ProPropertyNewsCDA Sends Lease Termination Notice to One Constitution Avenue Developer

CDA Sends Lease Termination Notice to One Constitution Avenue Developer

ISLAMABAD: The Capital Development Authority (CDA) has issued a notice of termination of the lease for the One Constitution Avenue Project, owned by the BNP Group, due to their failure to deposit a PKR 3 billion instalment as directed by the Supreme Court.

In January 2019, the Supreme Court ruled that if the BNP Group failed to make a payment or provide a guarantee, the CDA could terminate the lease after giving a 30-day notice.

Despite reminders, the BNP Group failed to deposit the Rs2.916 billion instalment due for 2022 by December 31, 2022, leading the CDA to initiate the termination of the lease.

CDA rejected the BNP Group’s offer of a piece of developed land in lieu of the pending instalments and has asked for the due payment to be deposited.

The Public Accounts Committee (PAC) has directed the National Accountability Bureau (NAB) to investigate the non-payment of Rs17 billion by the BNP Group.

The project has been plagued with controversies since its auction in 2005 and has also been on the radar of the Federal Investigation Agency (FIA) and NAB.

CDA cancelled the lease and sealed the building in 2017 for deviating from its intended use as a hotel to the construction and sale of residential apartments.

The project was de-sealed in 2021 following a Supreme Court ruling in 2019 that required the BNP Group to deposit PKR 17.5 billion in instalments over eight years, of which only the first instalment of PKR 1.7 billion was paid.

The developer, Hafeez Pasha, has filed a review petition in the Supreme Court against the 2019 decision.

Furthermore, an investor expressed hope that the court will protect the rights of overseas Pakistanis who have invested their money in the project.

Leave a Reply

Your email address will not be published.