The Capital Development Authority (CDA) alongside the Islamabad district administration carried out an overnight evacuation of residents from the prominent One Constitution Avenue building located in Islamabad’s Red Zone on Thursday night. This action followed the Islamabad High Court’s (IHC) decision to uphold the cancellation of the building’s lease, citing a significant multi-billion-rupee default by the developer.
The operation commenced shortly after the court ruling, with authorities clearing families from the high-rise and assuming control over the premises. This evacuation occurred just hours after the IHC rejected appeals filed by BNP (Private) Limited and the apartment occupants, thereby affirming the CDA’s authority to revoke the lease of this contentious property.
In a landmark verdict delivered by IHC Chief Justice Sardar Muhammad Sarfraz Dogar, the court brought resolution to a protracted dispute surrounding the fate of the skyscraper in the capital’s sensitive Red Zone.
The case revolves around a five-star hotel project initially awarded to BNP Group nearly twenty years ago. However, the project was later altered from a hotel to residential apartments and commercial spaces. The CDA contended that over the span of 21 years, the developer failed to meet the financial commitments stipulated in the agreement.
Out of a total liability of Rs17.5 billion, only Rs2.9 billion had been paid, amounting to approximately 16.6 percent of the dues. The CDA emphasized that ownership rights were conditional upon full payment as per the auction terms, and the financial default justified the termination of the lease.
The court supported the CDA’s stance, referencing prior rulings by the Supreme Court and Islamabad High Court. It noted that subsequent review orders had diminished the legal protections previously granted to the developer.
Notably, the judgement cited a 2022 letter from BNP, which attributed the company’s inability to continue payments or complete the project to adverse economic conditions and sovereign credit downgrades by Moody’s and Fitch.
During the hearings, the court scrutinized arguments concerning earlier rulings and potential conflicts of interest. It also acknowledged investigations by the Federal Investigation Agency (FIA), which resulted in an FIR against company executives and former CDA officials. Additionally, the case remains under review by the National Accountability Bureau (NAB), as per court records.
The Public Accounts Committee has independently examined certain aspects of the project. The dispute attracted widespread attention due to reports that several prominent figures, including political leaders and former officials, owned apartments within the building.
The CDA highlighted that Islamabad has lacked a planned five-star hotel for nearly two decades, complicating logistics for high-profile state visits and diplomatic events. Authorities confirmed that the evacuated property remains under CDA control as legal and administrative processes continue.
Among the notable apartment owners were PTI founder Imran Khan, Chaudhry Aitzaz Ahsan, Shandana Gulzar Aurangzeb, former minister Burjees Tahir, former caretaker prime minister Nasirul Mulk, and Kashmala Tariq.
