ProPropertyNewsPAC Asks NAB to Investigate Capital’s Grand Hyatt Hotel Payment Default

PAC Asks NAB to Investigate Capital’s Grand Hyatt Hotel Payment Default

ISLAMABAD: The refusal of a real estate company to pay the Capital Development Authority (CDA) installments totaling Rs. 17 billion against a leased plot auctioned by the civic agency in 2005, the Public Accounts Committee (PAC) has asked the accountability watchdog to look into this high-profile case.

As per the details, Noor Alam Khan, the chairman of the PAC, asked Aftab Sultan, the head of the National Accountability Bureau (NAB), to look into the non-payment of Rs. 17 billion by M/S. BNP Limited.

The company recently stated that it was unable to pay the outstanding installments on the lease intended for the construction of the Grand Hyatt Hotel.

The sources informed that the construction business replaced the hotel with high-rise residential buildings named ONE Constitution Avenue.

Furthermore, the PAC chairman said that he had learned that the firm had refused to pay the CDA billions of rupees due to a shortage of money.

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It is to note that the corporation was expected to give the CDA Rs. 2.9 billion in 2022, but instead of depositing the money, it gave the CDA a plot.

Besides, it is worth noting that the M/s BNP project “One Constitution Avenue” has also been broiled in controversy since the land was put up for sale in 2005.

The lease on the land was terminated by the CDA in 2017, however, the project was de-sealed in 2021, after 5 years, as a result of a decision by a 3-judge Supreme Court panel chaired by the then-chief justice Saqib Nisar.

Moreover, Naveed Ilahi, a former member estate, sent the request to the Attorney General of Pakistan (AGP) for review when the developer proposed that CDA take back a piece of commercial property from the firm in exchange for the money it owed to the capital agency.

In a letter dated August 16, 2022, the member estate requested that the developer contact the highest court “for disposition of the relevant matter as per the suggestions provided to this office for settlement of current litigation” after consulting with the AGP office.

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