New Khan Colony in Lahore was severely affected by monsoon flooding following the Ravi River overflow, submerging streets and low-lying residential blocks. The disaster intensified scrutiny over the colony’s lack of valid NOG/NOC approval, prompting public criticism of provincial authorities. Developer Aleem Khan announced a compensation package for displaced residents and confirmed ongoing flood-water diversion works to protect the site and resume construction and possession handovers.

Journalists raised serious concerns about whether floodwaters were intentionally diverted to shield New Khan Colony, potentially worsening inundation in nearby communities. This allegation triggered public outcry and demands for transparency regarding engineering decisions and inter-colony equity in disaster response planning.

Aleem Khan publicly committed financial compensation for displaced residents of New Khan Colony and confirmed deployment of emergency flood-mitigation infrastructure—including embankments and drainage channels—to prevent recurrence and enable resumption of possession handovers and construction activities.