DHA Occupies Parts of Bahria Town Phase 8 Rawalpindi

Defence Housing Authority has reportedly taken over parts of Bahria Town Phase 8 Rawalpindi. This takeover is said to be connected to the old settlement related to DHA Valley and DHA Phase 2 Extension between Bahria Town and DHA, under which Bahria Town allegedly received billions of rupees for land acquisition and development works but failed to deliver its commitments.

DHA has put up fences in certain parts of the established Sectors F-2 and F-3 of Bahria Town Phase 8 to claim lands owned and developed by Bahria Town. This sudden action has caused panic, uncertainty and unrest among the allottees who own plots and even constructed houses in the fenced areas.

Actions against Bahria Town are not limited to these two sectors. Several lands have also been earmarked for public auction by the Government of Punjab, including lands forming part of Bahria Town Phase 8 Extension, Bahria Orchard and other areas. Sectors F-4, F-5 and the newer extensions of Phase 8, including E-1 Extension, J-1 and K-1, are also being discussed in connection with the wider dispute and auction proceedings.

NAB has also initiated official inquiry against Bahria Town for alleged fraud in Bahria Town Phase 8 Extension and sought ownership records and claims from the affected members.

Affected members recently gathered at the Bahria Town Head Office in Phase 8 Rawalpindi to discuss the issue and seek a response from the management. According to the members, Bahria Town has not announced any policy yet but has assured them that their rights will be protected and that efforts are underway to reach an out-of-court settlement with DHA.

Bahria Town Management has asked members to remain calm and wait for an official policy because the matter is serious and may take time to resolve. Stakeholders who have met DHA officials also claim that DHA is aware of the concerns of existing plot owners and may announce a policy to address their position. However, DHA has not issued any official public statement so far.

Bahria Town has also published its version of the dispute on social media, explaining the history of its partnership with DHA and claiming that it fulfilled more than its contractual obligations but is still being victimized. Until DHA releases its own detailed version, it is not possible to determine the complete facts or responsibility of either party.

Below is Bahria Town’s published version of the dispute:

Bahria Town has separately appealed to its members, investors, stakeholders and the general public to take legal recourse and file public petitions against the Government, NAB and DHA to protect their ownership rights. This appeal indicates that there is still no final agreement between Bahria Town and DHA and no clear policy for people who own plots, houses or other properties on the subject lands.

Below is a copy of Bahria Town’s public appeal:

Bahria Town has reportedly handed over the land records of the affected areas to DHA. Although the full extent of the takeover remains unconfirmed, Sector F-2 from the central 80-foot boulevard onwards and Sector F-3 from part of Street 5 and the complete Street 9 onwards have reportedly been fenced and taken under DHA control.

Sectors F-4, F-5 and Bahria Orchard fall within the wider area enclosed by the DHA boundary but they may not be occupied by DHA but seem like part of the attached land earmarked for auction by the Government. There are also unconfirmed reports regarding Sectors P, G and Bahria Hamlets, but no official record or statement has confirmed their inclusion.

Market sources are speculating that affected members may either be offered refunds according to their Bahria Town account statements or asked to pay additional membership, development or conversion charges to receive DHA allotment letters. These are only market expectations, and neither DHA nor Bahria Town has announced any confirmed adjustment policy.

Bahria Town has been contacting affected members to gather public support against the takeover. Several banners have been put up by Bahria Town along Bahria Expressway in Bahria Town Phase 7 to inform general public about the takeover and encourage affected members to contact the official number for guidance.

An unverified complaint letter from Bahria Town to the Chief Minister of Punjab is also circulating on social media. In the letter, Bahria Town describes DHA’s action as an illegal and forceful occupation rather than a mutually agreed transfer or settlement.

There is still no official clarification about whether DHA has a court order, land transfer document or any other legal authority supporting its action inside the developed sectors of Bahria Town Phase 8.

Below are the two pages of the complaint letter circulating on social media:

The dispute is unfolding alongside government proceedings to auction lands situated in several mouzas of Rawalpindi. These lands are reported to form parts of Bahria Town Phase 8 Extension, Bahria Orchard, F-4, F-5, E-1 Extension, K-1, J-1 and surrounding areas. The auction proceedings are connected to NAB’s efforts to recover the Rs. 460 billion amount payable under the Supreme Court judgment against Bahria Town.

Bahria Town has issued public notices disputing the auction and warning the general public not to participate. It claims that buyers may face financial loss, legal consequences and ownership disputes if they purchase the subject lands through the auction.

Below are copies of the English and Urdu public notices issued by Bahria Town:

A separate auction notice relating to lands stated to be owned by Ahmad Ali Riaz, son of Malik Riaz, in certain mouzas of Rawalpindi was also circulated before the auction scheduled for 17 June 2026.

Please note that the subject auction has reportedly been conducted by the Assistant Commissioner Rawalpindi, however no authentic auction reports are available publicly.

Many reports link the current takeover to the old DHA Valley dispute, where Bahria Town collected money from members for land acquisition and development but could not fulfil its commitments. Bahria Town had earlier surrendered Serene City to DHA in 2017 as part of the settlement of the same long-standing issue.

During the Serene City transition, affected members were given options to receive alternative plots in Bahria Town Phase 8, claim refunds from Bahria Town or pay additional charges to DHA and obtain allotment letters for the same plots. Transfers remained closed for several months until DHA completed the adjustment process.

Members who retained their plots and completed the DHA adjustment later benefited from the conversion of Serene City into DHA Phase 3. This previous example is one reason some affected members of Phase 8 are hopeful that DHA may recognize their existing plots instead of cancelling their ownership rights.

The following on-ground video shows DHA-branded containers and the construction of a boundary wall inside Sector F-3:

The video confirms that DHA has taken physical control of part of the developed area. However, it does not explain the legal basis of the action, the exact land boundaries or the future position of existing plot owners and residents.

This is a serious matter because the disputed lands have already been developed, sold and transferred to the general public. Possession has been issued in several areas, and houses have also been constructed. Any action affecting these lands therefore involves the rights of third-party buyers who paid Bahria Town and also paid the applicable government taxes and transfer charges.

The situation can be resolved without major damage to the property market only if DHA and Bahria Town protect the existing members. DHA must clarify whether it will recognize Bahria Town allotment, transfer and possession documents, issue DHA allotment letters for the same plots or offer an adjustment, compensation or refund policy.

Authorities must also identify the exact sectors, streets and plot numbers affected by the takeover, explain the status of constructed houses and clarify whether transfers, construction approvals and utility connections will remain available in these areas.

There is still no confirmation that DHA’s physical takeover of parts of Sectors F-2 and F-3 and the government auction of other Bahria Town lands are part of the same action. They may be connected to the wider legal and financial disputes surrounding Bahria Town, or they may be separate proceedings.

Until an official policy is issued, buyers should remain cautious about purchasing property in the reportedly affected sectors. DHA, Bahria Town, NAB, the revenue authorities and the Government of Punjab must provide immediate clarification so that plot owners and residents are not left dependent on rumours and unofficial assurances.

We will continue updating our members as further developments emerge and will report confirmed information regarding the affected areas, negotiations between DHA and Bahria Town and any policy announced for existing plot owners.