The federal cabinet has approved a Joint Investigation Team (JIT) report on alleged multi-billion-rupee irregularities in Islamabad’s One Constitution Avenue project, deciding to blacklist the developer, refer cases against officials to the National Accountability Bureau (NAB), re-auction the property and turn the Red Zone towers into a five-star hotel.
The decisions were announced at a press conference in Islamabad by Federal Minister Ahsan Iqbal, alongside Information Minister Attaullah Tarar and Minister of State Talal Chaudhry. Interior Minister Mohsin Naqvi separately said the government would seek an agreement with a major international hotel chain to run the building.
One Constitution Avenue: What the JIT Found
According to the ministers, the JIT found that:
- The auction of the 13.5-acre plot had significant irregularities, and the company that got the lease was not eligible for it.
- Construction violated the approved building plan.
- The project’s name was allegedly obtained fraudulently, and its address is linked to the Ministry of Foreign Affairs.
- Apartments were sold without meeting legal requirements or clearing dues owed to the Capital Development Authority (CDA).
The report names former CDA chairman Kamran Lashari and other officials for allegedly relaxing rules for the developer, according to the briefing. It also refers to former finance adviser Abdul Hafeez Shaikh in connection with the project. These are findings of the investigation; no response from the named individuals had been reported at the time of writing, and the allegations will be tested in legal proceedings.
Government Decisions on One Constitution Avenue
| Decision | Detail |
|---|---|
| Developer | To be blacklisted, with legal proceedings against those involved |
| CDA officials | Cases referred to NAB |
| Property | To be re-auctioned through a transparent process |
| Future use | To be turned into a five-star hotel run by an international chain |
| Investors | Full invested amount to be returned with interest above KIBOR |
| CDA reforms | Mandatory transfers and officer rotation every two years |
Background: From Rs4.88 Billion Auction to Lease Cancellation
The 13.5-acre plot near the Prime Minister’s House and the Diplomatic Enclave was auctioned to BNP Group on March 9, 2005, for Rs4.88 billion. In 2019, the Supreme Court directed the company to pay Rs17.5 billion within eight years. When the payment was not made, the CDA cancelled the lease. The Islamabad High Court later upheld the cancellation but stopped the CDA from evicting existing allottees.
Prime Minister Shehbaz Sharif first formed a high-level committee led by Law Minister Azam Nazeer Tarar. A JIT made up of Grade-21 officers from NAB, the Federal Investigation Agency (FIA), the Securities and Exchange Commission of Pakistan (SECP), the Federal Board of Revenue (FBR), ISI and the Intelligence Bureau was then given 60 days to complete the probe.
How the One Constitution Avenue Decision Affects Apartment Owners
Ahsan Iqbal said genuine investors would not be penalised and would get back their full invested amount along with interest above KIBOR. Interior Minister Naqvi said the government would work to ensure fair payments to affected occupants. The exact number of affected apartment owners and the timeline for payments have not been announced yet.
What Happens Next
NAB will take up the cases against the CDA officials named in the report, while the government prepares the re-auction and talks with international hotel chains. Naqvi said he was confident the conversion into a hotel could happen within months. Any legal challenge by the developer or allottees could affect the timeline.
For official updates, visit the Capital Development Authority (CDA) website.
Read More: NA Panel Orders Removal of Islamabad Checkposts
Follow the TaazaTaren channel for the latest updates.
