SBCA and Audit Report claims clash over KIMCSL construction

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SBCA and Audit Report claims clash over KIMCSL construction

KARACHI: Sindh Building Control Authority (SBCA), District Central, is accused of protecting illegal construction projects worth billions of rupees in Karimabad Ismailia Multipurpose Cooperative Society Limited (KIMCSL). A statement submitted by Syed Kamal Ahmed, Deputy Director SBCA District Central (Gulberg), in the Sindh High Court in petition C.P. No. D-4924 of 2025 has been contradicted by the society’s 2024 audit report.

Justice Muhammad Iqbal Kalhoro and Justice Syed Fayyaz-ul-Hassan Shah were hearing the case before the SHC Division Bench. In a written affidavit submitted to the court, Syed Kamal Ahmed, Deputy Director SBCA District Central (Gulberg), claimed that during an inspection of KA-8, no evidence was found of a Ground Plus 10-floor building, its advertisement, or the booking or sale of flats.

However, the society’s 2024 audit report, prepared by H.A.M.D. & Company, Chartered Accountants, shows that Rs. 25.827 million was received for the booking of flats in project KA-8, while Rs. 330.666 million was recorded as funds allocated for property. These figures contradict the claim made in the affidavit submitted to the court and indicate that Syed Kamal Ahmed gave a statement before the court that was contrary to the facts, potentially misleading the court.

On the other hand, construction violations still exist in the KA-8 and K4 projects despite the assurance given to the court. The SBCA lawyer had assured the court that any construction against the approved building plan would be dealt with according to the law. However, the elevation of KA-8 is different from the design provided by the architect, and the Karachi Building & Town Planning Regulations 2002 are also being violated. Similarly, an additional K4 building is being constructed alongside the existing K4 building, even though no partial completion certificate under Section 3-2.16 has been issued for K4.

In this matter, a resident of the society has approached the relevant authorities regarding the alleged misuse of official positions and powers by Syed Kamal Ahmed, Deputy Director SBCA District Central (Gulberg), and Husnain Shah, Deputy Registrar of the Cooperative Societies-II Department Karachi, who is described as a close friend of Imran Arwan, Secretary KIMCSL. However, the applications submitted to the relevant authorities are still pending, and no action or inquiry has reportedly been completed so far.

According to sources, the District Central, Anti-Corruption Establishment (ACE) Karachi sought reports on Sept 2, 2026, from the SBCA, the Registrar Cooperative Societies, GoS, the Director Administration of SBCA Karachi, and the Secretary/Chairman of Karimabad Society. The report sought detailed information about the ongoing construction activities, related projects, and the society’s management committee. However, the applicant continues to visit the concerned departments every day, while the departments continue to pass the matter from one office to another, causing further delays in action.

On the other hand, regarding the tax matters mentioned in the audit report, a resident has submitted an application to the Federal Board of Revenue (FBR), seeking an examination of the society’s tax records and returns. The application states that taxes deducted from payments made for tenders are allegedly not being deposited. It also raises concerns that properties may be sold to preferred individuals and that undisclosed funds may be laundered. The resident has called on the FBR to conduct a full investigation.

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