Sub-Registrar accused of fraud in Rs500 million property registry scandal

Sub-Registrar Muhammad Shafiq Khan Chandia faces serious allegations of corruption after reports surfaced accusing him of fraudulently registering a commercial property worth Rs500 million as residential. The alleged scheme resulted in a substantial loss to the government due to evaded stamp duty and capital gains tax.

Sources reveal that two local residents, Arshad Mehmood Khan and Javed Akhtar, exchanged properties—an 11-marla residential plot in Nilkot and a 5-marla commercial plot in Shalimar Colony, opposite BZU Police Station. However, with the suspected involvement of Sub-Registrar Chandia, the 16-marla commercial property was deceptively recorded as residential, causing a government loss of Rs1.9 million in unpaid taxes and duties.

The investigation further uncovered that Akhtar, previously a non-active filer, was falsely listed as an active taxpayer, reducing the stamp duty, while Arshad Khan, a non-filer, was similarly shown as compliant. The registry, recorded under No. 112-2024-001475 on May 27, 2024, and approved on August 3, 2024, drastically undervalued the commercial property at Rs8.7 million, far below its market price of Rs500 million. Documents related to the registry indicate this alleged fraudulent activity.

The property, situated in a clearly commercial area with a plaza on-site, was reportedly manipulated to avoid paying the proper tax and fees. The registry also underreported the property’s value, leading to only Rs87,200 being paid in stamp duty instead of the appropriate amount. Additionally, Rs2.088 million in advance tax and capital gains tax were evaded by exploiting tax filing loopholes.

When asked for comment, Sub-Registrar Chandia denied the accusations, asserting that the property was accurately registered as residential. Meanwhile, Additional Deputy Commissioner Revenue (ADCR) Abubakar has pledged to personally inspect the property. He assured that if found to be commercial, the registry would be voided, and those responsible would face legal consequences.

Local residents have called for swift action from Deputy Commissioner Multan, Wasim Hamid Sandhu, along with Anti-Corruption authorities and the Federal Board of Revenue (FBR), urging them to investigate what they describe as a network of corruption involving the Sub-Registrar and his associates.