The real estate sector is a keystone of economic growth worldwide, often serving as a primary vehicle for investment and wealth accumulation for certain classes of the society. However, this sector is also highly susceptible to corruption, money laundering, and regulatory violations. A 2017 report by Transparency International titled “Doors Wide Open” highlights how corrupt individuals and criminals can easily purchase luxurious properties anonymously, facilitating money laundering in the real estate sector (Transparency International, 2017).

In many countries, including Pakistan, corrupt practices within real estate not only distort the economy but also widen socioeconomic disparities. The absence and non-implementation of strict regulatory enforcement allows black money to be funneled into real estate, inflating property prices and making homeownership increasingly unattainable for low and middle-income sections of the society.

The construction sector in Pakistan contributes over 2.5% to the GDP (Challenges and opportunities in Pakistan’s real estate Sector – Perspectives – Business Recorder). However, often the weak enforcement by the oversight bodies have given way to the corrupt practices in the construction sector. A notable example is Nasla Tower, a 15-story high-rise built illegally along Karachi’s main Shahrah-e-Faisal and subsequently ordered by the Supreme Court of Pakistan, to be demolished.

Such unchecked developments not only compromise the urban landscape but also leave homebuyers vulnerable to financial losses. Many citizens unknowingly invest their savings in unapproved projects, only to face demolitions, legal disputes, or loss of ownership. Recognizing this critical issue, Transparency International Pakistan’s Advocacy and Legal Advice Centre (ALAC) caters such complaints to provide necessary legal advice to the victims of different forms of corruption in the construction sector.

On January 20, 2025, TI Pakistan received a complaint regarding unauthorized construction in Karachi’s residential area. A local builder had been involved in constructing an illegal commercial structure on a residential plot. The violation contravened the Sindh Building Control Ordinance (SBCO) 1979 and Chapter 3 of the Karachi Building and Town Planning Regulations (KBTPR) 2002, which require prior site approvals and No Objection Certificates (NOCs) to be obtained by the builders before they start construction.

The complainant informed ALAC that despite multiple complaints from the residents of the area, the Sindh Building Control Aauthority (SBCA) failed to take any action, allowing illegal construction to continue. Upon receiving the complaint, TI Pakistan wrote to the provincial Chief Minister of Sindh, highlighting that as per Section 6 of SBCA Ordinance 1979, the authority is required to approve the plan of building construction and grant No Objection Certificate (NOC). The ALAC further highlighted that the illegal construction of multi-storey buildings on residential plots is in clear contravention and Section 7-A of SBCA Ordinance 1979 requires the authority to take action against any illegal construction.

On February 13, 2025, the Office of the Deputy Commissioner (DC) Karachi took decisive steps to halt the illegal project, initiating the demolition of the unauthorized structure. Further, on February 19, 2025, the police registered two First Information Reports (FIRs) against the builder, launching criminal proceedings.

This case underscores the power of civic engagement and advocacy in combating corruption. TI Pakistan’s intervention not only ensured accountability in this specific instance but has also highlighted that when citizens act as oversight, the illegal practices can be combatted. ALAC continues to champion the rule of law, empowering thousands of citizens to stand against corruption and demand transparency and rule of law.