Kaukab Iqbal, Chairman of the Consumers Association of Pakistan, while talking to the media at CAP Head Office, welcomed the decision of the Federal Constitutional Court to lift the ban on converting residential plots into commercial category in Karachi. He termed it a landmark and historic decision for the development of Karachi city, promotion of business activities, and the real estate sector.
He stated that this decision will significantly increase the value of residential properties in Karachi and create new investment opportunities in the city. He further said that the Consumers Association of Pakistan appreciates the honorable court for this important judgment.
He said that the government should now introduce strict and effective regulations for builders and developers across Pakistan on the lines of Dubai property law to protect billions of rupees of consumers. He proposed that no builder or developer should be allowed to take direct bookings from the public, and all bookings should be processed through relevant government institutions under proper supervision.
He added that builders must be required to deposit a security amount with the government before launching any project, so that in case of delay, non-completion, or extra charges from buyers, the affected consumers can be compensated through the government mechanism.
He further stated that large-scale real estate frauds are being reported across the country, especially in Karachi, where innocent citizens are misled through advertisements and attractive marketing campaigns and end up booking projects but neither receive property nor refunds.
He noted that in many cases, builders are selling projects without even having physical ownership of land. He demanded the immediate establishment of a strong regulatory authority to oversee all stages of real estate projects—from booking to possession—so that consumers can be protected from fraud.
He also stressed that the government must formulate clear laws regarding the conversion of residential property into commercial use to protect residential areas. He warned that without proper regulation, residential zones may be affected by denting workshops, warehouses, distribution centers, and similar commercial setups.
He urged the government to ensure proper legal guidance so that a balance between residential and commercial usage is maintained.
He further said that thousands of buyers across Pakistan are still suffering as their investments remain stuck in various housing and development projects, and therefore both federal and provincial governments must introduce strict regulations immediately to ensure full protection of consumer rights.
He also added that he has constituted a committee under Vice Chairman CAP Muhammad Kamal Mughal to resolve the issues of consumers facing delays in property delivery by builders. The committee has also been authorized to inspect properties according to approved maps of Sindh Building Control Authority.
He said that a Property Complaint Center will soon be opened on Tariq Road, where any consumer can directly file complaints against builders.
He issued a strong warning to builders, stating: “Do not play with innocent consumers. We are standing with them to protect their rights.”
