The Islamabad High Court (IHC) has upheld the cancellation of the lease for the multi-billion-rupee One Constitution Avenue, ruling that apartment buyers do not possess ownership rights and may instead seek legal remedies against the developer.
PMYP Chairman Reviews Preparations for Green Mobility Conference in Islamabad
In a detailed judgment, Chief Justice Sardar Muhammad Sarfraz Dogar dismissed petitions filed by BNP (Pvt) Limited and other stakeholders challenging the decision of the Capital Development Authority (CDA) to terminate the lease.
The court held that the CDA’s action was lawful and aligned with the framework previously established by the Supreme Court of Pakistan. It emphasized that strict compliance with the apex court’s directives was mandatory.
The dispute stems from a 2005 lease agreement under which BNP was granted land to develop a five-star hotel. However, the project was later converted into a high-end residential and commercial development. The lease was initially terminated in 2016 but reinstated by the Supreme Court in 2019, subject to strict financial conditions, including payments totaling Rs17.5 billion within eight years.
According to the judgment, BNP failed to meet its financial obligations, including timely installment payments and provision of acceptable bank guarantees. The court noted a consistent pattern of delays and non-compliance, rejecting the developer’s argument that administrative issues on the part of the CDA caused the setbacks.
The IHC further ruled that even if there were delays by authorities, they did not absolve BNP of its contractual responsibilities. It also confirmed that the CDA had fulfilled due process requirements by issuing notices and providing sufficient opportunity to rectify the default before terminating the lease.
Addressing claims by apartment buyers and investors, the court clarified that their rights were dependent on the validity of the developer’s lease. Since the lease had been lawfully terminated, no independent ownership rights could be established.
However, the court noted that affected buyers are not without recourse and may pursue legal action against BNP to recover their investments.
The judgment also underscored the public nature of the land involved, stating that the case carried significant public law implications and that CDA’s actions must be assessed based on legality and adherence to judicial directives.
Separately, recent reports indicated that residents of the building were served eviction notices, with videos circulating on social media showing a heavy police presence at the site. Some claims suggested forced entry into apartments, though these reports remain contested.
Notably, several prominent individuals are reported to own apartments in the building, including Imran Khan, Aitzaz Ahsan, Shandana Gulzar, Burjees Tahir, and Nasirul Mulk.
Following the court’s decision, Shehbaz Sharif constituted a high-level committee to review the matter and directed authorities to halt further action temporarily.
The ruling marks a significant development in one of Islamabad’s most high-profile real estate disputes, reinforcing regulatory oversight and the importance of compliance with contractual and judicial obligations.
