| ISLAMABAD - The Capital Development Authority on Wednesday partially sealed One Constitution Avenue project over non-payment of its annual instalment of Rs.2.91 billion and took over possession of the entire building.
After the failure of the owner of said iconic project in depositing instalment for the year 2022, CDA on Tuesday terminated the lease of its plot allotted on the name of M/s BNP Pvt Ltd —located next to the Convention Centre Islamabad. Later, yesterday’s operation was jointly conducted by the Building Control Directorate and Enforcement Directorate in the presence of Chairman CDA Noorul Amin Mengal and Chairman Public Accounts Committee Noor Alam Khan. All the offices have been sealed and record is confiscated by the concerned formations while the Director Estate Management-II CDA is made administrator of the project.
However, the limited movement of the residents will be allowed as the residential areas were kept un-sealed. Termination of lease and sealing operation was carried out because the 30-day deadline given to the company to clear its outstanding dues ended on Tuesday. The project remained controversial since its beginning as the owner was not only a defaulter in payments but he had also committed huge building plan violations, resulting in the cancellation of its lease agreement in 2016, which was also seconded by the Islamabad High Court.
However, the Supreme Court in its order dated 9th January 2019 had restored the lease agreement and M/s BNP Pvt Ltd was asked to pay Rs.16.273 billion in eight instalments at the tune of Rs.2.03 billion annually from 2019 to 2026. Besides apex court orders both parties could not reach a conclusion till 2020 when the Public Accounts Committee stepped into this matter where M/s BNP offered to pay the due amount of Rs.17.50 billion in 6 annual instalments at the rate of Rs.2.916 billion each year. CDA had accepted the deal which had PAC’s endorsement. In 2021, M/s BNP Ltd. successfully paid its first instalment of Rs.2.91 billion including Rs.1.69 billion as latest deposit while it got adjustment of its already paid amount of Rs.1.227 billion as well, which the group had paid to the CDA till 2015—before cancellation of its lease agreement.
Resultantly, the premises were de-sealed by the CDA and possession is handed over to the owner, who not only started finishing work on existing towers but also started gigantic construction work on adjacent land in violation of court orders but the city managers remained silent spectators over the illegality mysteriously and instead of stopping work on site only issued notices. However, the BNP group in 2022 openly defaulted and did not pay a single penny to the civic authority but it tried to engage it by offering different proposals i.e. land swap etc. but the CDA board categorically rejected any such deal with private builder going beyond the court orders. It is pertinent to mention here that the apex court while deciding to revive the lease agreement between CDA and M/s BNP made a condition that in case the group commits default in furnishing a guarantee or payment of any instalment on its due date, CDA shall have the right, after giving one month notice to terminate the lease.
The Estate Management Directorate had served the 30-day lease termination notice to M/S BNP on 7th February 2023 and directed to fulfil its commitment and warned that otherwise its lease will be terminated again. Sources told further that it is a matter of high concern that a private builder has raised a huge structure on a land originally belonging to CDA by just paying Rs.2.9 billion while it allegedly pocketed billions of rupees from the market by selling properties inside the project.
They informed that certain elements within CDA provided a space to the builder to raise another tower on site and sell it into the market to create third party rights again and this criminal nexus needs to be inquired for fixing of responsibility for said lethargy. When contacted by The Nation, the owner of said project Hafeez Pasha in his written reply said: “We have proposed an upfront settlement of entire outstanding amount as determined by the Hon’ble Court.”
He informed that the learned AGP has signed off on the deal subject to the approval of the august Supreme Court. He added further that the proposed settlement allows the project to be saved and a major national project to be completed to the satisfaction of all stakeholders. Mr. Pasha said the contractual settlement of a contractual dispute by the contracting parties is the appropriate mechanism for the settlement of their disputes. “We are just waiting for the Hon’ble court to fix the hearing at the earliest possible time so the matter can be decided,” he informed. |
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