CDA moves to evacuate One Constitution Avenue building after court ruling

ISLAMABAD: The Capital Development Authority (CDA) and the Islamabad district administration evacuated residents from the high-profile One Constitution Avenue building in Islamabad’s Red Zone on Thursday night after the Islamabad High Court (IHC) upheld the cancellation of its lease over a multi-billion-rupee default.

The CDA and Islamabad district administration launched an overnight operation soon after the court ruling, clearing families from the skyscraper and taking control of the premises.

The evacuation came hours after the IHC dismissed appeals filed by BNP (Private) Limited and apartment occupants, effectively endorsing the CDA’s decision to cancel the lease of the controversial property.

IHC Chief Justice Sardar Muhammad Sarfraz Dogar announced the verdict, concluding a long-running dispute over the fate of the high-rise project in the capital’s sensitive Red Zone.

The case centres on a five-star hotel project awarded nearly two decades ago to BNP Group, which was later converted into residential apartments and commercial space instead of the originally planned hotel.

The CDA argued that despite 21 years, the developer failed to fulfil financial obligations under the agreement.

It said only Rs2.9 billion had been paid out of a total liability of Rs17.5 billion, or around 16.6 per cent of the dues.

The authority maintained that ownership rights were contingent upon full payment under the auction terms and cited financial default as the basis for lease termination.

The court upheld CDA’s position, relying on earlier Supreme Court and Islamabad High Court rulings, and noted that subsequent review orders had weakened the legal effect of earlier protections granted to the developer.

The judgement also referenced BNP’s 2022 letter in which the company cited economic conditions and sovereign credit downgrades by Moody’s and Fitch as reasons for its inability to continue payments or complete the project.

During proceedings, the court examined arguments over prior rulings and potential conflicts of interest, while also noting investigations by the Federal Investigation Agency (FIA) that led to an FIR against company executives and former CDA officials. The matter is also pending before the National Accountability Bureau (NAB), according to court records.

The Public Accounts Committee has separately reviewed aspects of the project.

The dispute has drawn attention due to reports that several prominent individuals owned apartments in the building, including political figures and former officials.

The CDA said Islamabad had remained without a planned five-star hotel for nearly two decades, creating logistical challenges for high-level state visits and diplomatic events.

Authorities said the evacuated property remains under CDA control as legal and administrative proceedings continue.

Apartments in the building were also reportedly owned by prominent personalities, including PTI founder Imran Khan, Chaudhry Aitzaz Ahsan, Shandana Gulzar Aurangzeb, former minister Burjees Tahir, former caretaker prime minister Nasirul Mulk and Kashmala Tariq.