| ISLAMABAD: In a major development in Islamabad’s real estate sector, the Capital Development Authority (CDA) on Wednesday took over management control of One Constitution Avenue Project over default.
The CDA, after sealing the offices of marketing and sales of the said projects, appointed the director estate as its administrator. The sealing operation was conducted by CDA in the presence of Chairman Noorul Amin Mengal, Member Estate Afnan Alam and Public Account Committee Chairman Noor Alam Khan. CDA also confiscated the record of the project.
Earlier, on Tuesday, CDA cancelled the lease of the plot of the One Constitution Avenue Project over default. Sources said that CDA had been facing a lot of pressure from various quarters for not sealing the building of the defaulter.
But on Tuesday, the CDA chief said that there would be no relaxation against defaulters and ordered the cancellation of the lease of the said plot, where the twin towers stand.
Estate director appointed administrator of building
Sources said that people who are living in apartments will not be disturbed; however, the offices of the developer have been sealed and the administrator appointed by the CDA will run the day-to-day affairs of the towers with the support of a committee of residents.
Last month, the CDA issued a “lease termination notice” to the BNP Group, which owns One Constitution Avenue, after it failed to deposit Rs3 billion in instalments owed to the CDA in line with the directives of the Supreme Court.
The notice issued by the CDA’s director estate stated as per the court ruling if BNP Group defaulted in furnishing a guarantee or payment of any instalment on its due date, the civic agency would have the right, after giving a 30-day notice, to terminate the lease.
The letter had said that the said group was advised “to remit an instalment due for 2022, amounting to Rs2.916billion on or before December 31, 2022” but in spite of subsequent reminders, the instalment was not deposited.
Controversies and BNP project
Since the auction of the plot in 2005, the project has been mired in controversies. The CDA had auctioned the 13.5 acres for Rs4.8 billion, but after getting a slight payment, it handed over the possession of the plot to the company. The project also remained on the radar of the Federal Investigation Agency and NAB. In 2017, the CDA cancelled the lease and sealed the building since the plot was meant for the construction of a hotel, but the developer had built and sold residential apartments instead.
The project was subsequently de-sealed in 2021 after almost five years following a 2019 judgement by a three-member Supreme Court bench headed by then-chief justice Saqib Nisar.
When contacted, the developer of the project, Hafeez Pasha, told Dawn on Tuesday that review petitions were pending in the Supreme Court against the said decision of Rs17.5 billion payment.
On the other hand, the CDA had said that the apex court in its orders had clearly stated that in case of default, the CDA may take action in accordance with its rules and regulation.
“In the light of the Supreme Court decision, the lease of the plot has been cancelled for non-payment and default,” said a brief press release issued by the CDA. It also stated that several years ago, the CDA had also cancelled the lease of the said plot, but the apex court had given another opportunity to the developer to deposit the payment, but he did not comply in the light of court orders.
Published in Dawn, March 9th, 2023 |
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