Khawaja brothers are also being investigated by the accountability watchdog for accumulating wealth beyond known sources of income.
A heavy contingent of police has been deployed around the court to prevent workers of the Pakistan Muslim League-Nawaz (PML-N) from disturbing the law and order situation. No one except the relevant persons are allowed to enter the court premises.
Khawaja Saad Rafique and his brother were arrested on Dec 11 after the Lahore High Court rejected their bail plea.
During the hearing, the former minister’s counsel told the court that his client had nothing to do with Paragon Housing Society and was falsely being framed in the case.
The NAB had launched an investigation into the alleged scam in November last year after a number of victims staged protests and held a press conference at the Lahore Press Club against what they termed housing society’s fraud.
The anti-graft authority had arrested former Lahore Development Authority (LDA) director general Ahad Khan Cheema and others over allegations of corruption in Ashiana Iqbal Housing Society scam.
During the investigation, it was revealed that Cheema had misused his authority and received huge sums of money in return for awarding the contract of the project to Casa Developers.
The amount was allegedly paid from the account of the Paragon Housing Society.
In October 2018, Qaiser Amin Butt, a director of the Paragon Housing Society, was arrested and had agreed to become an approver and recorded his statement before the chairman NAB.