Purbachal New Town was launched in 1995 with a promise to build a modern and planned city on Dhaka’s northeastern flank. Three decades on, it remains far from habitable. Core infrastructure and roads are still missing despite the project already consuming roughly BDT 80 billion. Shortages of water, electricity, and gas have left plot owners struggling to settle there.
RAJUK has now proposed another project worth roughly BDT 90 billion to make the area fully livable. Its development project proposal has gone to the Planning Commission. Experts, however, argue that Purbachal will not become habitable unless RAJUK abandons its policy of allocating plots to the wrong people.
The original plan for Purbachal New Town aimed to ease Dhaka’s pressure and provide housing for its middle class. Dhaka, now home to nearly 35 million people, has since become world’s second most populous city. Purbachal New Town, meanwhile, has turned into Bangladesh’s largest land market rather than a housing scheme. Many of the allottees became wealthy overnight by securing RAJUK plots.
Professor Dr. Akter Mahmud of Jahangirnagar University’s Urban and Regional Planning department alleged that RAJUK’s allocation policy itself created this outcome. Speaking to Bonik Barta, he said, “Land acquired from poor households was handed to individuals with no housing need. That’s why those plots are left idle for decades. RAJUK allotted plots to those who already have other homes. Senior secretaries, bureaucrats, and politicians hold plots in Purbachal. But they already live in upscale areas such as Gulshan and Banani. They even have their own property abroad. Then why would they move to Purbachal at all?”
He added, “RAJUK should immediately cancel allocations for anyone with alternative housing. That single step would bring residents to Purbachal almost overnight. But RAJUK won’t take such action. They intend to use the new BDT 90 billion project to fuel further corruption. The entire approach is a waste of public funds.”
RAJUK sent a development project proposal for an initiative titled Purbachal Infrastructure Development Project to the Planning Commission in August. It said the plan would rely on its own financing and oversight to build and maintain infrastructure and make the area fit for residents. The commission raised questions regarding the proposed spending across several sectors, the procurement plan, fresh land development, and allocations for items judged unnecessary. The proposal was returned for revision.
Project documents show an estimated cost of BDT 88.7 billion. The DPP outlines spending across 12 sectors, including land development, road widening, footpaths, mosques, temples, markets, and playgrounds. RAJUK has set aside BDT 1.87 billion for land development that remains unfinished after three decades. Widening and reinforcing 337 kilometres of roads would cost BDT 15.11 billion. Another 321 kilometres of new roads would cost BDT 3.23 billion. Ten sluice gates and one box culvert would require BDT 1.61 billion. A residential building covering 20,213.7 square metres is budgeted at BDT 1.40 billion. RAJUK has also proposed BDT 7.67 billion for 276 mosques and three other religious structures, BDT 130 million for Ansar barracks, BDT 545 million for setting street lights across 363 kilometres, and BDT 13.4 billion for 19 kitchen markets.
RAJUK’s plan also includes building RAJUK Purbachal School and College at a cost of BDT 2.88 billion to provide a modern education system and ensure a sound learning environment within the project area. Construction, scheduled to begin in September 2025, is set to finish in June 2028. Officials say the plan will provide learning opportunities for 4,000 students and serve an estimated 1.6 million residents.
The Planning Commission, however, has questioned the feasibility study for the school and college and has asked RAJUK to undergo a fresh assessment by a third party.
Additional Secretary Kabir Ahamed of the Planning Commission told Bonik Barta, “RAJUK wants to build infrastructure in Purbachal to make the area liveable. Besides infrastructure, they will also build a school and college. The project was meant to shift part of Dhaka’s population. But the absence of basic services has deterred residents. Who will move to a place with poor transport links, limited security, no hospital access, and no schools? Will people live in the few parks there are? Many bought plots but have not built houses because the area still lacks core facilities.”
Urban specialists are questioning whose interests RAJUK is serving by pushing Purbachal at a combined cost of BDT 170 billion across its old and new projects. They argue that RAJUK turned Purbachal into Bangladesh’s largest land market rather than a solution to the housing shortage. Land was originally acquired at less than BDT 14,500 per katha (1 katha is approximately 720 sq. feet). RAJUK later charged allottees BDT 150,000 per katha. Prices multiplied with each transfer of ownership. Purbachal plots now sell for BDT 10 million to 15 million per katha on average.
Professor Adil Mohammed Khan, an urban planner, told Bonik Barta, “RAJUK should have built and sold flats instead of selling plots. That approach would have eased the housing shortage. Instead, RAJUK handed out plots, allowing buyers to become millionaires without effort. The practice is a violation of rule of law and justice. This can now be compared to gambling. Securing a plot through a lottery makes someone a millionaire overnight! RAJUK’s responsibility is not to enrich people through a game of chance.”
Plot owners and intermediaries say high land prices are the main barrier to building houses in Purbachal. Prices jump sharply with each transaction. Even if RAJUK delivers full civic services, they said, Purbachal will struggle to attract housing at the required scale because the land has become too expensive. A small group will continue to profit from trading plots rather than building homes.
Asked about the new project, RAJUK chairman Md Reazul Islam told Bonik Barta that the initiative aims to complete Purbachal’s remaining infrastructure. “The first project is still unfinished. Leftover funds will be merged with new allocation. New efforts will focus solely on infrastructure. Incomplete work will be completed.”