Immovable Properties for Industrial Purposes - Khalid Zafar & Associates

There are broadly two sorts of properties available for setting up a manufacturing unit and/or factories in Pakistan. The first choice is the industrial zones which are either transferred by the Government on leasehold rights or transferred on other special/specific conditions which vary from one industrial zone from another. The plot size in such industrial zone normally varies from 4 kanals to 16 kanals. The title of such properties are the transfer letter or lease deed (and the subsequent chains) issued by the concerned industrial zone. Such title can be verified from the office of the relevant industrial zone and may involve the records of the concerned registrar of assurances.

The other option is the free hold land which can be utilized unconditionally and can be acquired/ purchased without any restriction of area. However, such land involves a complex title verification structure due to involvement of revenue records.

The systems of revenue records were developed some three hundred years ago when the basic economy in Sub Continent was agriculture and the major source of revenues for the governments was collection of land revenue. The basic aim of revenue records were collection of revenue and not the title. However, the methodology and development of these records and their updating procedures are so perfect that practically and even as per the adjudication of the Superior Courts the revenue records are considered as evidence of title. Even the law states that the record of rights (which are part of revenue records) carries a strong presumption of truth and the burden of proof is on the person who is rebutting/challenging such records. The major component of title verification in such lands are the revenue records and hence requires expertise of the lawyers having grasp over revenue laws.

The biggest problem in Pakistan vis-à-vis title verification of freehold lands is the availability of lawyers who understand the revenue records and revenue laws or can keep a balance between practice and law. The verification of revenue records involves the office of local of patwari upto the records available in District Courts. Other records to be verified may involve the records of the registrar of assurances.