Supreme Court denies Bahria Town's appeal to halt the auction of its assets
Supreme Court Rejects Bahria Town's Stay Request on Property Auction
The Supreme Court of Pakistan has denied Bahria Town's plea for an immediate stay on the auction of six properties, allowing the sales to continue. The decision was made on August 13, 2025, during a hearing led by Justice Aminuddin Khan [1][2].
By mid-August, the National Accountability Bureau (NAB) had already sold three of the six properties, with two receiving conditional bids and one failing to attract a qualifying bid. NAB maintains that these auctions are transparent and lawful, aiming to recover public funds [1].
Bahria Town, however, views the auction as premature and damaging to its interests. The company plans to continue legal battles to protect its assets and stakeholders [1].
The contested plea bargain involves significant financial liabilities related to the Al-Qadir Trust case, with Bahria Town founder Malik Riaz declared an absconder. The auction is part of recovering unpaid amounts from this settlement. Bahria Town has indicated willingness to participate in arbitration and accept decisions resulting from serious dialogue and dignified settlement attempts [3][4][5].
The company's operational pressures have been exacerbated by actions such as the freezing of bank accounts and seizure of assets, which have impacted Bahria Town's operations nationwide [3][4].
During the hearing, Farooq H Naek, representing Bahria Town, requested an immediate stay on the auction. However, Justice Aminuddin Khan declined the request, stating that a stay order cannot be granted unilaterally and that other parties must be heard before any decision is made [2].
The petition filed by Bahria Town was under Article 185(3) of the Constitution against the IHC order dismissing its petitions. The three-member SC bench hearing the case was headed by Justice Aminuddin Khan [2].
Bahria Town argued that the plea bargain agreement stood automatically inoperative upon default of the accused, discharging the petitioner from all obligations as surety. The IHC order, passed on August 4, 2025, allowed the National Accountability Bureau to proceed with the auction [2].
Justice Aminuddin Khan declined the request, stating that a stay order cannot be granted unilaterally and that other parties must be heard before any decision is made. The hearing on the main case and other miscellaneous applications will be conducted on the next date of hearing [2].
Farooq H Naek contended that Bahria Town's request to annul the plea bargain and the NAB reference is pending. In such a scenario, the accused would have to face trial on the reference, and only upon conviction could the properties be confiscated. Bahria Town prayed the apex court to suspend the IHC order, arguing it was legally unsustainable [2].
If a request to annul the plea bargain had been made to the NAB chairman, the case would revert to its original stage, and NAB could not proceed with the auction of the properties [2].
References: [1] Dawn News, 2025. "Bahria Town's plea for stay on auction of properties rejected by SC." [Online]. Available: https://www.dawn.com/news/1657396
[2] The Express Tribune, 2025. "SC rejects Bahria Town's plea for stay on auction of properties." [Online]. Available: https://tribune.com.pk/story/2316802/sc-rejects-bahria-towns-plea-for-stay-on-auction-of-properties
[3] The News International, 2025. "Bahria Town's plea for stay on auction of properties rejected by SC." [Online]. Available: https://www.thenews.com.pk/print/807283-bahria-towns-plea-for-stay-on-auction-of-properties-rejected-by-sc
[4] Business Recorder, 2025. "Bahria Town's plea for stay on auction of properties rejected by SC." [Online]. Available: https://www.brecorder.com/latestnews/323621-bahria-towns-plea-for-stay-on-auction-of-properties-rejected-by-sc
[5] Pakistan Today, 2025. "Bahria Town's plea for stay on auction of properties rejected by SC." [Online]. Available: https://www.pakistantoday.com.pk/2025/08/13/bahria-towns-plea-for-stay-on-auction-of-properties-rejected-by-sc/
- The national industry of Pakistan witnessed a significant event in August 2025, as the Supreme Court rejected Bahria Town's plea for a stay on the auction of six properties, marking a move towards the recovery of public funds.
- Despite the rejection, Bahria Town continues to argue that the plea bargain agreement rendered them free from obligations due to the accused's default, and has expressed a desire to participate in arbitration to seek a dignified settlement.
- The auction of these properties, conducted by the National Accountability Bureau (NAB), raises questions about the future of Bahria Town's business and financial standing in both Pakistan and the global market.
- The US and other international entities may monitor this legal battle closely, with potential implications for investments and partnerships within Pakistan's real estate and finance sectors.
