ISLAMABAD: Apartment owners in the residential tower “One Constitution Avenue”, constructed on a plot adjacent to the Jinnah Convention Centre on Constitution Avenue, include prominent political and business figures.
However, their investments worth millions of rupees are now at risk following the cancellation of the plot’s lease by the Capital Development Authority (CDA) and its takeover of the property.
The key question remains: what is the background of this controversial project?
According to CDA officials, the 13.5-acre plot was originally allotted for the construction of a five-star hotel and service apartments. The plot was purchased on March 9, 2005, by BNP Group — which includes Bismillah Textiles, Niagara Mills, Paragon City, and Belhasa City — through a successful bid of Rs75,000 per square yard, amounting to Rs4.888 billion. The payment was to be made in 15 annual instalments, with 15pc deposited along with a bank guarantee.
However, the allottee failed to construct the hotel and service apartments as per the agreement and instead built residential apartments, which were sold with ownership rights — a clear violation of the original terms of the agreement. The company sold out 240 apartments for Rs7.171 billion, and received Rs5.398 billion out of total amount.
The CDA Board, in its meeting on July 29, 2016, cancelled the allotment of the plot. The decision was subsequently challenged in court, and the matter eventually reached the Supreme Court, then headed by Chief Justice Mian Saqib Nisar.
On January 19, 2019, the Supreme Court ruled that the BNP must pay a total of Rs17.5 billion to the CDA, including the amount already deposited, in eight equal annual instalments. The BNP paid Rs2.9 billion, which resulted in regularisation of the plot. The CDA cancelled the lease again in 2023 due to non-payment of remaining amount. The BNP challenged the move in the Islamabad High Court, which dismissed the petition on Thursday.
Following the court’s decision, the CDA launched a late-night operation between Thursday and Friday and took possession of the plot. Interior Minister Mohsin Naqvi and CDA Chairman Sohail Ashraf were present at the site, along with a heavy police contingent.
Residents were issued notices to vacate their apartments within 12 hours. The building comprises 253 apartments — most of which remain unoccupied — though some residents live there permanently.
Uncertainty now looms over the future of those who purchased these apartments for millions of rupees. Questions remain as to whether their investments will be lost and whether refunds, if any, will be made by the BNP or the CDA.
A committee formed by the prime minister is expected to present its recommendations next week, which may provide clarity on the fate of the affected buyers.
