The Federal Board of Revenue has auctioned Bahria Town’s entire 527-kanal and 10-marla property in Murree District to recover unpaid income tax, according to people familiar with the transaction.
The land sits at Mauza Kathar Sharqi on Angori Road in Tehsil Murree, District Rawalpindi. FBR conducted the latest public auction under the Income Tax Ordinance, 2001, and the Income Tax Rules, 2002.
Sources said the sale relates to an outstanding tax demand of Rs 26.47 billion. The successful buyer must pay about Rs 825 million, including applicable taxes. Officials have not disclosed the buyer’s identity but described him as a Pakistani businessman.
Fresh Buyer Replaces Earlier Bidder
FBR re-advertised the property after an earlier auction failed to reach completion. Businessman Musawar Abbasi had submitted the highest bid in the previous process, but the transaction did not close.
A different bidder offered the highest amount in the latest auction. The notice said FBR “reserved the right to reject or accept any bid without assigning any reason.”
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The authority had made several attempts to sell the property before securing the latest bid. Earlier notices also identified the same parcel and linked its sale to the recovery of billions of rupees in unpaid taxes.
Business Recorder reported in February that FBR had rescheduled an auction from February 16 to March 5. The planned sale was to take place at the Large Taxpayer Office in Islamabad.
Court Clears Recovery Proceedings
The auction also faced a legal challenge linked to the property’s attachment. Earlier this month, an accountability court dismissed Bahria Town Karachi’s contempt application against FBR and the National Accountability Bureau.
Judge Muhammad Mehboob Awan ruled that FBR could continue recovery proceedings under the relevant tax laws. The court heard that NAB had provisionally attached the property before later withdrawing that attachment.
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FBR told the court it had sought permission once it learned about the provisional attachment. NAB also argued that no official had wilfully disobeyed or obstructed a court order.
“The contempt plea of the learned counsel for BTK is hopelessly misconceived and is found to be meritless,” the judge ruled. He dismissed the contempt case and related applications.
Auction Supports FBR Recovery Drive
The completed sale marks a significant step in FBR’s enforcement action against large tax defaults. However, the roughly Rs 825 million purchase amount covers only a small portion of the reported Rs 26.47 billion liability.
The auction does not by itself settle the entire tax demand. FBR may therefore continue other recovery measures allowed under tax law to collect the remaining amount.
The property had remained under the tax authority’s recovery process since at least 2025. Reports said FBR attached it in September that year before issuing repeated auction notices.
The latest transaction now moves the land to a new private buyer, subject to payment and completion requirements. FBR has not publicly released the final bidder’s name or a detailed completion timetable.
