One Constitution Avenue to become five-star hotel as govt takes possession

ISLAMABAD: Interior Minister Mohsin Naqvi said on Wednesday that the government had legally taken possession of the disputed One Constitution Avenue project in Islamabad and planned to convert the building into a five-star hotel within the next few months.

Speaking at a press conference in Islamabad following the federal cabinet meeting, Naqvi said the government would approach a major hotel chain to reach an agreement for converting the high-rise into a hotel, citing a shortage of hotels in the capital.

“Possession of One Constitution Avenue has legally come into our hands following today’s cabinet meeting,” he said.

Naqvi said the government would not allow encroachments on public land in Islamabad, whether involving government buildings, police stations on green belts or other forms of illegal occupation.

Describing the scale of encroachment in the capital as extensive, he urged residents who had extended their lawns beyond their property boundaries in sectors including F-6, F-7, F-8 and F-10 to return to their designated limits.

He said the government wanted to ensure equal application of the law, regardless of whether those involved were wealthy or poor.

Naqvi said the government would make every effort to convert the building into a five-star hotel within months, adding that this was its original intended purpose.

He also credited the CDA team involved in pursuing the case while acknowledging that mistakes by authority officials had contributed to the controversy.

Naqvi also said the government would compensate affected investors according to the amounts determined in the Joint Investigation Team (JIT) report, describing its recommendations as binding on the government.

He thanked Prime Minister Shehbaz Sharif for supporting the process, saying the premier had backed a decision based on merit despite the controversy surrounding the government’s earlier attempts to take possession of the building.

Naqvi said the committee previously overseeing the building’s affairs had been dissolved following the JIT report, and the CDA member for administration would take charge of its matters immediately.

Earlier, the federal minister announced plans to re-auction the One Constitution Avenue project and compensate affected investors with their principal investment and an additional amount calculated on the basis of the Karachi Interbank Offered Rate (KIBOR).

Information Minister Attaullah Tarar said the federal cabinet had approved an inquiry report recommending action against Capital Development Authority (CDA) officials and others who allegedly facilitated illegal construction at the Islamabad high-rise.

Addressing the press conference alongside Minister of State for Interior Talal Chaudhry and Planning Minister Ahsan Iqbal, Tarar said the Joint Investigation Team (JIT) had identified the alleged offences and those responsible.

He said the National Accountability Bureau (NAB) had been asked to fast-track its investigation and complete it within three months.

Tarar added that the cabinet had endorsed the report and appreciated the JIT’s work, stressing that no one would escape accountability irrespective of their position or influence.

Talal says project received facilitation over two decades

Talal Chaudhry said the project had remained under way for around 20 years, during which action had been taken on only two occasions, both under Pakistan Muslim League-Nawaz (PML-N) governments.

He said investigations by the Federal Investigation Agency (FIA), efforts to take control of the project and cancellation of its contract had taken place during PML-N tenures, while facilitation had continued during other governments.

Chaudhry alleged that people beyond the CDA, including politicians, media figures and judges, had also facilitated the project, contributing to the losses suffered by investors.

He said authorities had given apartment claimants opportunities to establish the legality of their ownership and transactions. Some people, he added, had acquired flats through transactions involving alleged facilitation.

Responding to a question about people who had not appeared before the authorities, Chaudhry said most had responded to repeated notices, but some had not. He named PTI founder and former prime minister Imran Khan among those who, according to him, had failed to appear.

Chaudhry said the detailed report would be uploaded to the government’s website and stressed that the law would be applied equally in Islamabad.

Investors to receive principal amount plus KIBOR-based compensation

Talal said the government did not want people who had fallen victim to the alleged fraud to suffer financial losses.

He said affected investors would receive their principal investment as well as compensation calculated on the basis of KIBOR. Some buyers had invested money brought from abroad and possessed legal documentation, while many had no fault in the matter, he added.

He said the JIT had recommended protecting such investors by returning their investment along with the additional amount calculated on the KIBOR basis.

The government also plans to put the project through a fresh, transparent bidding process as part of its proposed restructuring.

Asked why investors should be compensated despite repeated reports and court proceedings raising questions about the legality of the project, the minister said the government wanted to protect those who had been defrauded and would follow the JIT’s recommendations.

Main contractor, other accused already on ECL

The ministers said the main contractor, identified as Hafeez Sheikh, and other accused were already on the Exit Control List (ECL) and a blocklist.

They said NAB’s ongoing investigation would examine the role of all those allegedly involved, including individuals outside the CDA who may have provided protection or facilitated the illegal activity.

The bureau has been given three months to complete its investigation and file a reference against those found responsible.

Asked whether former chief justice of Pakistan Saqib Nisar would also be investigated over a court ruling concerning the project, the ministers said the investigation would examine the role of all those who had facilitated the scheme.

Ahsan Iqbal outlines inquiry findings

Ahsan Iqbal said Prime Minister Shehbaz Sharif had constituted a committee to investigate the One Constitution Avenue project, whose JIT report was presented to the federal cabinet and approved on Wednesday.

He said the inquiry found that rules and regulations had been relaxed to benefit the developer company, enabling construction in violation of prescribed requirements and causing losses to the national exchequer.

The report identified former CDA chairman Kamran Lashari and other officials in connection with the alleged irregularities and recommended action against those involved.

Iqbal said the inquiry had also found that the project’s name, One Constitution, had been obtained through forgery and recommended that it be changed.

The report recommended a transparent re-auction of the project, a comprehensive overhaul of the CDA and a policy requiring its officers to be rotated every two years to improve accountability and prevent the development of entrenched interests.

Iqbal said the government would ensure that people who had invested their life savings in the project received their money back. He did not provide a detailed timetable for the re-auction, compensation payments or the project’s future use.

One Constitution Avenue is a high-rise residential and commercial development near Islamabad’s Constitution Avenue that has remained embroiled in legal and regulatory disputes over alleged violations of building regulations and outstanding obligations.