Web Desk: The Islamabad High Court has dismissed multiple petitions related to the one constitution avenue apartments, backing the Capital Development Authority’s (CDA) decision to terminate the lease over non-payment of dues.
The case, which authorities describe as a contractual and legal default rather than a political matter, centers on a high-value land lease in Islamabad’s prime district.
In 2005, the Capital Development Authority leased 13.5 acres of land near the Jinnah Convention Centre for the development of a five-star hotel. M/s BNP secured the project with the highest bid of Rs. 4.882 billion.
However, CDA handed over possession after receiving only 15% of the initial payment. This arrangement later led to repeated payment defaults and multiple rescheduling efforts.
Despite being granted revised payment plans and several opportunities to comply, BNP failed to meet its financial obligations.
The project became further entangled in legal issues after apartments and commercial units were sold or subleased to third parties, creating additional claims on the property.
In a key development, the Supreme Court of Pakistan revived the lease on January 9, 2019, on the condition that BNP pay Rs. 17.5 billion, minus prior payments.
To date, BNP has paid Rs. 2.916 billion, leaving an outstanding amount of Rs. 14.583 billion. Additionally, a bank guarantee worth Rs. 1.689 billion expired and was neither renewed nor enhanced.
Following continued defaults, CDA issued payment and bank guarantee notices in December 2022. When compliance did not follow, it served a lease termination notice on February 7, 2023, and formally cancelled the lease on March 8, 2023.
Authorities also rejected BNP’s proposal to adjust outstanding dues against commercial space, stating that such arrangements with private developers would violate policy and set a risky precedent.
The Public Accounts Committee also reviewed the case and directed action, including sealing and possession measures, to safeguard public interest.
CDA has since appointed an administrator and an interim management committee to oversee the building’s daily operations.
Meanwhile, cases filed by BNP and other stakeholders, including the Bank of Punjab, were dismissed by the high court on April 30, 2026.
Officials reiterated that while Pakistan remains open to investment, authorities will not tolerate defaults, misuse of public land, or non-payment of dues.
They emphasized that the case underscores the importance of enforcing the rule of law and protecting public assets, framing it as a test of accountability rather than politics.
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