The protracted legal battle over the Grand Hyatt Islamabad project has reached a pivotal stage as authorities have begun eviction procedures following years of unpaid dues and alleged breaches of lease conditions.
In 2005, the Capital Development Authority (CDA) allocated 13.5 acres of land to BNP for developing a five-star hotel, with the lease secured for Rs 4.8 billion. The land transfer was initiated with a 15 percent upfront payment, but BNP reportedly failed to fulfill subsequent financial commitments, resulting in multiple rescheduling of payments.
In a significant development in 2019, the Supreme Court of Pakistan ordered BNP to pay Rs 17.5 billion to reinstate the lease. However, BNP has only remitted Rs 2.9 billion to date, leaving an outstanding balance exceeding Rs 14.5 billion. Consequently, the lease was officially terminated in 2023.
Authorities also claim BNP breached the original agreement by constructing 263 residential flats on the premises. Despite warnings from the CDA that buyers would assume legal risks, these apartments continued to be sold and exchanged in the market.
Of the total units, only 69 are reportedly occupied, with the majority held as investment properties. Among the occupied flats, many are used for short-term rentals rather than permanent housing.
Following orders from the Islamabad High Court, the CDA, in collaboration with Islamabad Police, has issued seven-day eviction notices to the residents and occupants of the contested flats.
Meanwhile, although the CDA had earlier cautioned buyers about potential legal consequences, the government is now reportedly considering compensating affected parties at their original purchase prices, adding further complexity to this high-profile dispute.
