Key Takeaways
- The Federal Board of Revenue has canceled an auction of a Bahria Town property in Rawalpindi.
- The property was linked to a tax default amounting to Rs. 26.47 billion.
- The auction was canceled due to a Supreme Court stay order.
The Federal Board of Revenue (FBR) has canceled the auction of a Bahria Town property in Rawalpindi that was scheduled for Tuesday. The property, which includes 32 kanal and 11 marla of land along with a constructed house in Bahria Golf City, was to be auctioned to recover tax dues amounting to Rs. 26.47 billion.
According to the auction notice, the property was linked to a tax default amounting to Rs. 26.47 billion. The auction was scheduled to be held at 11:30 a.m. at the Large Taxpayers’ Office in Islamabad.
The cancellation comes after the Supreme Court issued a stay order on September 29, 2026, restraining FBR from recovering the outstanding amount from Bahria Town. This order has effectively halted the auction process.
This is not the first time FBR has encountered legal challenges in recovering tax dues from Bahria Town. In September 2026, FBR had auctioned a Bahria Town property on Park Road in Islamabad and recovered Rs. 2 billion. It also held an auction of 527 kanal of land in Tehsil Murree in July 2026.
The cancellation of this auction reflects the ongoing legal and administrative complexities faced by FBR in recovering tax dues from large property developers. The Supreme Court's decision to bar FBR from taking enforcement action against Bahria Town has added another layer of difficulty to the recovery process.
The decision to cancel the auction is a significant development for both FBR and Bahria Town. It underscores the importance of legal and judicial processes in tax recovery and property auctions in Pakistan.
While the auction has been canceled, FBR may explore alternative methods to recover the outstanding tax dues. The outcome of this legal challenge and the future of tax recovery efforts against Bahria Town remain uncertain.
