A university-led inquiry has brought to light alleged multi-billion rupee irregularities in the Punjab University (PU) Town-III housing project, raising serious questions about governance, transparency, and financial oversight in one of Lahore’s prominent teachers’ residential schemes.
The report, prepared by a committee constituted by the university administration in August 2025 on the request of the Academic Staff Association, outlines a series of administrative lapses and financial discrepancies that, according to the findings, span developer selection, land transactions, and overall project management. The committee, headed by Prof Dr Sayyid Salman Rizavi and comprising senior faculty and administrative officials, was tasked with examining growing concerns raised by stakeholders.
Among the most significant observations is the absence of a public advertisement or competitive bidding process for selecting the Town-III developer. The report states that this lack of transparency not only undermined the credibility of the selection process but also opened the door to potential legal complications. It further alleges that the developer companies involved were established on an emergency basis specifically for this project, casting doubt on their technical and financial capacity to execute a large-scale housing scheme.
The inquiry also highlights allegations that portions of the teachers’ housing scheme were sold by developers to third parties, suggesting an inability to complete the project as originally planned. Concerns over conflict of interest were raised after it emerged that a close relative of a management committee member was included in one of the developer firms. The committee has recommended further investigation into this matter.
Financial management practices within the project have also come under scrutiny. The report claims that commercial land worth billions of rupees was handed over to developers without ensuring tangible benefits for registered members. It also notes inconsistencies in payment mechanisms, stating that while initial land payments were made directly to landowners, later transactions involved large sums being transferred to developers’ accounts without clear documentation of land purchase costs.
Despite the project’s initial four-year completion timeline, the committee observed that no significant development work took place during that period, even in the absence of legal obstacles. It further alleges that developers sold land at multiple locations, complicating the project’s structure and raising questions about asset allocation.
The report points out that financial statements of the Town-III project were not shared with stakeholders, prompting the committee to recommend a comprehensive third-party audit. It has also urged the university administration to seek assistance from government investigative agencies to examine financial transactions and probe allegations of payments made to certain management committee members.
Legal irregularities were also flagged, including the failure of initial developer partners to formally dissolve their partnership, which led to litigation. Despite ongoing disputes, the same parties reportedly entered into a new agreement in 2022, a move the committee described as highly unusual and warranting legal scrutiny.
Additionally, the report raises concerns over land registration practices, alleging that plots were registered in individual names rather than under the association, and that transfers were made to individuals outside the university community. It also questions claims of regulatory approval, stating that while members were issued letters suggesting Lahore Development Authority clearance, the scheme allegedly lacked the required technical approvals.
The committee emphasized that the Academic Staff Association did not have the legal mandate to initiate such a housing project and recommended that future initiatives be undertaken only with proper authorization from statutory bodies. It further stressed that the management committee must remain accountable until the final possession of plots is delivered and called for active oversight by the university administration to protect the interests of teachers and employees.
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The findings add to earlier observations reportedly made by the Anti-Corruption Department regarding large-scale irregularities, intensifying calls for a thorough and transparent investigation into the project.
