According to the announcement by Interior Minister Syed
Muhsin Raza Naqvi, Islamabad will be completely different in the next two
years. He announced various development projects and also defended the CDA
Anti-encroachment operations in different areas of the Capital.
Regarding the ongoing anti-encroachment operation in the
capital, he said that not a single house owned by anyone has been demolished;
however, construction of houses on government land is not permitted.
The operation continues despite the protests and resistance of
the people. No media covered it; there was no uproar in any government
chambers, nor was this matter discussed on the mainstream media's prime-time
news programs.
But the seriousness of the matter came to light when an order was issued to vacate the One Constitution Building on Constitution Avenue. The whole matter went viral on social media, mainstream media started reporting the news, and big-name journalists started giving their opinions on the matter.
How does it
start?
On the intervening night of Thursday and Friday, a large contingent of Islamabad police first gathered at the convention center and then, after some time, entered the One Constitution Avenue located near the Serena Hotel.
Police officials present at the scene informed the residents
of the building that the building had been declared illegal and that they
should vacate the building immediately.
The administration has given residents a one-day deadline to
evacuate, warning that if the evacuation is not completed within the stipulated
time, forceful action will be taken.
It should be noted that these ‘twin towers’ located in
Islamabad’s red zone have been the subject of controversy since the beginning
of their construction.
Intervention
of the Prime Minister.
After the widespread criticism of those powerful residents on
social media and mainstream media, Prime Minister Shahbaz Sharif has formed a
high-level committee regarding One Constitution Avenue in Islamabad.
Minister for Law and Justice Azam Nazir Tarar will head the
committee, with Minister of State for Interior Talal Chaudhry and the
Secretaries of Cabinet and Commerce as members.
According to the announcement, this committee will review
the entire matter within the next week and submit a comprehensive report to the
Prime Minister. During this time, any affected person in this matter will be
able to present his/her objections to the committee, and the committee will
listen to the parties and the affected parties without any discrimination.
The Islamabad administration and CDA will take no action
until the Prime Minister takes a final decision on this matter. The Prime
Minister has issued instructions to form a special committee to fulfill the
requirements of justice in the One Constitution Avenue matter.
Minister
of State for Interior Talal Chaudhry Press Talk:
Minister of State for Interior Talal Chaudhry said that
steps are being taken to eliminate encroachments, laws were violated in the One
Constitution Avenue case, the government is taking effective steps to eliminate
encroachments, and the state is firm on its stand against illegal occupations
and illegal constructions.
Talal Chaudhry said that the company that leased One Constitution
Avenue violated the laws, while 3 companies had obtained the lease to build a
hotel on this place, rich or poor, everyone will be treated equally according
to the law.
Talal Chaudhry said that in 2005, the plot was auctioned, based
on which a loan was taken from the bank; however, the relevant group went
bankrupt due to non-payment of installments, and the matter later went to NAB,
where it was promised to give commercial properties, although its legal
entitlement did not exist.
He revealed that about 250 residential apartments were built
in violation of the lease agreement, while the company owners are also accused
of defrauding the public and defrauding institutions.
He said that the CDA had made it clear that this place could
not be used for any purpose other than a hotel. In 2014, the Public Accounts
Committee took notice, and former Interior Minister Chaudhry Nisar Ali Khan sent
the case to the FIA.
FIA and
this Matter:
During course of Enquiry No. 26/2017 of FIA/SIU, Islamabad,
it transpired that in 2005 the CDA land measuring to 13.5 Acres situated at
Constitution Avenue One, Islamabad was leased out for construction of 5 Star
Luxury Hotel to M/s BNP Group (consortium of four companies namely Bismillah
Textile Pvt Ltd, Belhassa International Co. LLC, Niaggra Mills Pvt Ltd and
Paragon City Pvt. Ltd) with consideration of total Rs. 4882.350 Million for the
period of 99 years.
15% amount of the total agreed amount was to be deposited by
the said company/consortium, while the remaining amount was to be paid in 15
years in yearly installments, inclusive of the accepted KIBOR rate. Balance
payable amount was also required to be secured through an irrevocable Bank
Guarantee as well as a Performance Guarantee for the completion of the project.
Abdul Hafeez Sheikh, CEO of Bismillah Textile Pvt Ltd one of the members of the
consortium, managed to rename his family-owned company M/s Elite Home Fashion
Design Pvt. Ltd as M/s BNP Pvt. Ltd. after winning the bid.
Then with the active connivance of CDA officers, he executed
the lease deed instead of a lease agreement on the basis of a fake joint
venture agreement with CDA as CEO of M/s BNP Pvt. Ltd instead of M/s BNP Group,
while BNP Pvt. Ltd was neither pre-qualified nor ever participated in the said
bidding process.
The alleged leased deed was turned down by the Joint Sub
Registrar, Islamabad to register as a lease deed as the same did not fulfill
its legal requirements i.e., full payment and completion certificate. It was registered
with the Rent Controller/Civil Judge, Islamabad, deceitfully and fraudulently.
Abdul Hafeez Sheikh, with the active connivance of concerned
CDA officers/officials, got changed post-bid terms & condition, detrimental
to CDA and contrary to the original scope of work.
Later on, Abdul Hafeez Sheikh was succeeded in waiving the
bank guarantee with the connivance of Muhammad Nawaz Kharal, the then
Additional Legal Advisor of CDA, and other responsible officers of CDA. He
never submitted a performance guarantee, nor did CDA officers requisition the
same. Thereafter, the accused never constructed.
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Former Chief Justice Saqib Nisar Verdict:
In January 2019, a three-member bench of the Supreme Court
of Pakistan, headed by the then Chief Justice of Pakistan Saqib Nisar, accepted
the BNP Group’s appeal against this decision and declared the High Court’s
decision null and void.
During the hearing, Chief Justice Saqib Nisar had remarked
that when the building was being constructed, the CDA did not object, and now
two towers of the Grand Hyatt have been built, and people have bought the
apartments. He had raised the question of who would construct the third tower of
the building?
Justice Saqib Nisar had also said that the problem will be
for those who have invested.’ It should be noted that at that time, the court
had also said in its order that the BNP Group would pay another Rs 17.5 billion
to the CDA over a period of eight years.
The CDA says that the said company failed to pay this amount
and could not comply with the conditions set by the court and fulfill its
financial obligations.
According to the CDA, out of the Rs 17.5 billion fixed by
the court, only Rs 2.9 billion was paid. On this basis, a notice of
re-cancellation of the lease was issued in 2023, and consequently, the lease
was cancelled.
During the hearing of the appeals against the CDA’s decision
to re-cancel the lease in the Islamabad High Court, the CDA also referred to
BNP’s letter dated July 25, 2022, in which the company admitted its failure to
continue the project or pay the annual installment of Rs 2.92 billion due to
adverse economic conditions.
During the hearing, the court was also told that after the
FIA investigated the matter, cases were also registered against the CEO of
BNP Company and former CDA officials; however, the matter was later handed over
to NAB, where action is still awaited, while the Public Accounts Committee had
also reviewed the matter.
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