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The LHC observed that absence of eligibility criteria which should ensure that the applicant had all the resources and expertise to be eligible for establishing the proposed housing society, as was reflecting in a number of cases, was being misused.
The court, in written orders, stated that a person or a group of persons moved an application before the LDA and then misused its name for advertising and selling the plots which had no legal backing or existence on the ground.
The LHC said that the absence of a proper regulation to allow an incapable person to indulge in the business of private housing societies had to be cured through administrative or legislative action.
In compliance with the Order passed by Justice Shahid Jamil, PEMRA has passed regulation 19A, Pakistan Electronic Media Regulatory Authority (Television Broadcast Station Operations) Regulations, 2012, whereby housing societies are required to obtain an NOC from the concerned development authority before airing of any commercial/advertisement on a TV channel. This action is expected to save general public from investing in sham housing societies.
Two-tier approvals of private housing schemes are granted by CDA
– Technical approval of the Layout Plan (LOP) of the scheme.
-Upon completion of subsequent formalities, the No Objection Certificates (NOC) for development of the scheme are issued. The sponsors can start development work and the sale of plots after obtaining NOC from CDA.
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