Is Their Fraud Involved In Construction Companies in Lahore? A recent investigation by the National Accountability Bureau has uncovered a massive land scam in Pakistan. Contractors were paid bribes to gain city contracts. In one case, as many as 300 people were involved in bribery schemes. A cooperative construction company’s chief testified about obtaining 2.5% government contracts through Mafia deals.
Construction Companies in Lahore
Construction companies in Lahore are infamous in Pakistan, and the National Accountability Bureau has launched a probe into a mega land scam involving the FBR Chairman, the Chief Collector of Lahore, and his friend, Rizcon. The company, which specializes in building and renovating residential complexes. However, the construction company’s alleged fraud prompted the NAB to write to the Punjab Land Development Company (PLDC) and demand that the firm hand over its records regarding the Ashiana Iqbal Lahore project.
The Punjab government had set August-30, 2016 as the deadline for the Orange Line Project. However, the work has been halted around 24 percent of the historic buildings. The Habib Construction Company has requested an extension until April-2018. However, the biggest hurdle to timely completion remains the inner squabbles between the contractors. The LDA officials allegedly tried to hand over government land to a private entity without following the rules.
Glorious Builders is established in 2004, and promises quality in its services. The company has built several residential projects in Lahore. Their goal is to make residential projects affordable, while also meeting deadlines. Glorious Builders is a well-established construction company in Lahore. They offer innovative construction technologies as well as full-out remodelling services. For this reason, it is essential to remain vigilant and educated about construction fraud.
Glorious Builders used different strategies to gain trust from the public, improving their position in the market. They promoted their project on large land portals and through vloggers. But once the scheme became public, the Grand Avenue Society announced that they would defraud the public. They were operating illegally because the Lahore Development Authority had not granted their society a permit. As the industry continues to develop, construction fraud becomes more common.
Bid rigging refers to price fixing and collusion among contractors to obtain contracts. It can occur before, during, or after construction. When contractors collide and try to increase the contract price, the price of the project can increase substantially. This makes it easier for the developer to recover their profit and line the pockets of project officials. This is not because the industry is full of bad people. It is because construction projects are a study of controlled chaos. If a construction company has a history of fraud, it can cost a lot of money in the form of litigation and tarnished reputation.
After the COVID-19 incident, Pakistan’s Federal Government announced a wide-ranging stimulus package of Rs. 1.2 trillion. It also announced a fixed income tax regime and reduced the provincial sales tax on construction material and construction services. Under the new scheme, construction companies would resume operations on 14 April. Hopefully, these measures will help revive the construction industry in Pakistan. Several cases of construction fraud involved two employees of the LDA.
In fact, the Punjab government has cancelled the Package-II contract and re-tendered the Chauburji-Ali Town track contract. The scandal has led to the re-tendering of other contracts as well. The LHC’s recent ruling on the Package-II project is a testament to the widespread fraud that is affecting the construction industry in the city. The changes that have impacted the construction industry have made it easier for businesses to start in Lahore. The one-stop shop will streamline the construction permit approval process, improve operational efficiency, and enforce service delivery timeframes.
Additionally, the government has launched a web portal for new applications. The most common type of construction fraud involves falsification of payment invoices and applications. Over half of all construction fraud cases involve falsified invoices. Fraud is a common practice in construction projects, and it is best to stay vigilant. A construction project can quickly turn into a nightmare if the payment processes are not transparent.Construction fraud is an unfortunate reality in Pakistan. It preys on people with dreams of investing in real estate or building a new home. Ultimately, this can be a vicious cycle.