ProPropertyNewsSC Dismisses Review Petition of One Constitution Avenue in Land Conversion Case

SC Dismisses Review Petition of One Constitution Avenue in Land Conversion Case

ISLAMABAD: The Supreme Court of Pakistan has dismissed a petition filed by BNP (Pvt) Ltd in a high-profile land case related to the One Constitution Avenue project.

The court declared the petition as infructuous, offering the petitioner the option to withdraw it or face dismissal.

Chief Justice of Pakistan Umar Ata Bandial, leading a three-judge bench, expressed regret over the petitioner’s actions.

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The petitioner had initially entered into a lease agreement with the Capital Development Authority (CDA) but later failed to fulfill its obligations.

Furthermore, the CJP noted that the petitioner now sought to reduce the agreed payment from Rs17.5 billion to Rs10 billion, which was not feasible.

Moreover, the court emphasized that the earlier judgment still stood, and the petitioner should adhere to it.

In addition, the CDA argued that it had already terminated the lease agreement with the private firm and taken possession of the property.

The matter was subsequently challenged before the Islamabad High Court (IHC). The IHC determined that since the lease had been canceled, there was no cause of action remaining for the court to decide.

Justice Ijazul Ahsan, another member of the bench, pointed out that the petitioner had accepted the conditions of the agreement, making it inappropriate for the court to reopen the matter.

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The bench advised the third-party interest, represented by residents of the apartments, to pursue their remedies through the high court by the law.

Besides, the petitioner’s counsel, Ali Zafar, argued that the property auction had been conducted transparently, and there had been no objections raised thus far.

However, the CDA unlawfully canceled the lease agreement.

The CDA had initially canceled the lease for the 13.5-acre plot in 2016 due to violations and irregularities.

The IHC upheld the CDA’s decision, but it was later overturned by the Supreme Court in 2019.

In response, the court directed the private firm to pay the CDA Rs. 17.5 billion in installments over eight years.

However, the company failed to fulfill its commitment after making the first payment.

Following this, the Public Accounts Committee (PAC) instructed the National Accountability Bureau (NAB) to investigate the non-payment issue.

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In March, the CDA canceled the lease once again, and the matter is currently pending before the IHC.

Since its auction in 2005, the One Constitution Avenue project, initiated by BNP (Pvt) Ltd, has been surrounded by controversies.

The CDA auctioned the 13.5-acre plot for Rs. 4.8 billion but received only Rs. 800 million at the time of possession. By 2016-17, the company had paid only Rs. 1.02 billion of the remaining amounts to the CDA.

Source: DAWN