The eviction of One Constitution Avenue luxury apartments in the heart of the capital has created a sense of unrest and doubtfulness amongst the residence of Islamabad while some circles are viewing it as a political stunt by the Capital Development Authority (CDA) instead of a legal battle.
The Capital Development Authority has termed the action against One Constitution Avenue a legal and contractual matter, saying the project started by the BNP (Bismillah group) remained in default for years despite repeated relief and rescheduling.
According to official documents, the 13.5-acre plot near the Jinnah Convention Centre was leased in 2005 for construction of a five-star hotel project. M/s BNP won the bid with the highest offer of Rs4.882 billion.
The CDA said possession of the land was handed over after an initial 15 percent payment, but the developer later defaulted on payments.
Authorities said the company was given multiple opportunities, including revised payment schedules, due to issues such as the 2005 earthquake, revised building codes and height restrictions imposed by the Civil Aviation Authority.
Officials said the matter became more complicated after apartments and commercial interests were sold or subleased, creating third-party claims and triggering multiple court cases.
The project’s lease was first cancelled in 2016. However, in January 2019, the Supreme Court of Pakistan restored the lease on the condition that BNP pay Rs17.5 billion, minus the amount already deposited, in annual instalments till 2026, according to the documents.
Documents show the developer has so far paid only Rs2.916 billion, while Rs14.583 billion remains outstanding. Authorities further said a bank guarantee worth Rs1.689 billion expired and was neither renewed nor enhanced as required under the agreement.
Islamabad: Residents of One Constitution Avenue apartments served eviction orders
The CDA said notices for payment and renewal of the bank guarantee were issued in December 2022, followed by a lease termination notice in February 2023. The lease was formally cancelled on March 8, 2023 after continued non-payment.
According to the authority, BNP later proposed adjusting outstanding dues against commercial space in the project, but the proposal was rejected. Officials argued that accepting such an arrangement could set a precedent for other defaulting developers.
The matter was also taken up by the Public Accounts Committee, which directed sealing and possession-related measures in what officials described as an effort to protect public interest and state land.
The Islamabad High Court (IHC) on Thursday upheld the CDA decision, canceling lease of iconic skyscraper One Constitution Avenue owing to the multi-billion rupees default.
The operation for eviction was launched after the Islamabad High Court upheld the Capital Development Authority decision to cancel the lease of the lavish apartments
Officials maintained that the case concerns protection of public land, recovery of public money and enforcement of the writ of the government and the law.
