ISLAMABAD (Kashmir English): The authorities have clarified that the Grand Hayat case (One Constitution Avenue apartments) is a contractual and legal default matter rather than a political issue, stressing that strict action was taken to safeguard public land and public funds.
According to official details, the Capital Development Authority (CDA) leased 13.5 acres of land near Jinnah Convention Centre in 2005 for the construction of a five-star hotel project. M/s BNP secured the lease after submitting the highest bid of Rs. 4.882 billion. However, possession of the land was handed over after only a 15 percent initial payment, which later resulted in repeated payment defaults and rescheduling requests.
Authorities stated that BNP was given multiple opportunities, including revised payment schedules, but failed to fulfill its obligations. The project also became legally complicated after apartments and commercial interests were sold or subleased, creating third-party claims.
On January 9, 2019, the Supreme Court revived the lease on the condition that BNP would pay Rs17.5 billion after adjustment of already paid dues. So far, BNP has paid Rs2.916 billion, while Rs14.583 billion remains outstanding.
Officials further said BNP’s Rs1.689 billion bank guarantee expired and was neither renewed nor enhanced as required. CDA subsequently issued notices in December 2022, followed by a lease termination notice on February 7, 2023. Due to continued non-payment, the lease was officially cancelled on March 8, 2023.
The CDA also rejected BNP’s proposal to adjust dues against commercial space, stating that such book adjustments with private developers were against the rules and could set a dangerous precedent for other defaulters.
Meanwhile, the Public Accounts Committee (PAC) also reviewed the matter and directed sealing and possession-related measures in the public interest. CDA has now appointed an administrator and an interim committee to oversee the day-to-day affairs of the building.
In a major development, petitions filed by BNP and other parties, including Bank of Punjab, were dismissed by the Islamabad High Court on April 30, 2026.
The government reiterated that investment is welcome, but default, misuse of public land, and non-payment of public dues will not be tolerated.
