Sehgal built the haveli for Budhan Bai, a Muslim dancing girl from Sialkot with whom he had a well-known relationship. According to local accounts, Budhan Bai was one of the richest women in the city at the time and owned the only automobile in Rawalpindi. Rather than converting to each other’s religions, the couple maintained their respective faiths; Sehgal built a temple for himself and a mosque for Budhan Bai within the compound of the haveli.
The architecture of the building reflected the traditional haveli style, notable for its carved wooden balconies and verandas overlooking Bohar Bazaar. It comprised separate sections, with private chambers, courtyards, and a main hall linking various quarters. Over time, the intricate Kashmiri woodwork and artistic details faded due to age and lack of restoration.
Partition and later ownership
After the Partition of British India in 1947, the original owners of the haveli left for India. Budhan Bai reportedly remained for some time but eventually abandoned the residence after the murder of her brother. By this period the property began to fall under the administration of the Evacuee Trust Property Board (ETPB), which manages properties left behind by migrants who moved to India after Partition.
Political significance and Sheikh Rasheed
Lal Haveli gained modern prominence in the 1980s, when Pakistani politician Sheikh Rashid Ahmad—then a young bookseller with a shop near the front of the haveli—began using the building as the base for his political activities. His admiration for the structure reportedly led him to acquire a portion of the property when he had the means, and over time it became synonymous with his political party, the Awami Muslim League (AML). Lal Haveli served as his political secretariat and meeting place, making it a well-known landmark in Rawalpindi’s political scene.
Ownership disputes and legal issues
In recent years, Lal Haveli has been at the center of ownership disputes involving the ETPB. In January 2023, the Evacuee Trust Property Board moved to seal the residence over allegations of “illegal occupation,” asserting that documentation for some units of the property was not valid and that certain parts were evacuee trust land. Sheikh Rashid denied these claims, maintaining that the sections he owned were legitimately his and describing the sealing as politically motivated. Legal challenges were filed in the Lahore High Court’s Rawalpindi bench.
In October 2023, the Lahore High Court annulled the sealing order and restored Lal Haveli’s status, directing a fresh hearing on the ownership question and permitting the property to be de-sealed. Sheikh Rasheed stated publicly that the haveli had been his political seat for over three decades.
