One Constitution Avenue: ‘Land was for hotel but one was never built’
SC admits appeal of building management, directs NAB to continue probe
PHOTO: EXPRESS
ISLAMABAD:
The top court on Thursday observed that plot next to the convention centre in the federal capital was meant for the construction of a hotel, but one was never built.
This was observed as a three-member bench of the Supreme Court, led by Chief Justice of Pakistan (CJP) Mian Saqib Nisar, admitted an appeal filed by the management of the building being built on One Constitution Avenue.
The building’s management had challenged the decision of a two-member bench of the Islamabad High Court (IHC) against their intra-court appeal. The management has claimed that there are key facts relating to the case were allegedly overlooked by the courts and hence the lease of the land should not be cancelled.
They had also pointed fingers at un-named political figures from Lahore who allegedly conspired to destroy the project.
While hearing the case on Thursday, the court was told that the BNP Group had bought the 13.5-acre plot of land in an auction for Rs4.88 billion with 85 per cent of the money to be paid in instalments over 15 years.
The group’s lawyer, Barrister Ali Zafar said that this was the most expensive lease executed in the history of the federal capital. He further explained that hotel’s construction suffered delays after the October 2005 earthquake which had caused widespread damage in that part of the country.
Moreover, he said that despite the fact they had initially planned to build 45 stories in the tower, they discovered that the building was located in the Red Zone and such a tall building cannot be built in that area, hence the number of floors were cut down 23.
He further argued that flats in the structure were not “sold” but given out on a 99-year lease, even though there was no bar on selling the flats.
At this, CJP Nisar remarked that there was a difference between serviced apartments and a hotel. He added that serviced apartments cannot be sold and giving a 99-year lease was akin to selling it.
“I am reiterating that granting a 99-year lease falls in the category of ‘selling’,” CJP Nisar said, adding that if something cannot be achieved by going through the proper channels, it cannot be done through any other means either.
The Capital Development Authority (CDA) also came under criticism from the top court with CJP Nisar noting that despite multiple violations of the land lease, the civic agency chose to grant the building’s management concessions instead of taking action.
CJP Nisar remarked that the case was apparently one more in a long list of contentious leases granted by former CDA chairman Kamran Lashari.
Justice Ijazul Ahsan said that this land was originally meant for the construction of a memorial or related structure. He added that the duration of lease for a serviced apartment is usually a month or two. While answering a question, Barrister Zafar told the court that the project is a joint venture between three companies including the Bismillah Group, Naya Group and Paragon.
At this, CJP inquired whether Paragon was the same company which had ties to a former government minister?
CJP Nisar, however, tellingly noted that since such a large structure has already been erected, it was not feasible to demolish it.
The court accepted the appeal for hearing but directed the apex anti-corruption watchdog, the National Accountability Bureau (NAB), to continue its probe into the project.
The CJP assured the plaintiff that the SC will issue its verdict in the case even if the parties involved reach some sort of a compromise
The hearing was then adjourned indefinitely.
Forensic audit of allotment documents
Meanwhile, in a separate case on illegal allotment of plots by the CDA, a three-member bench of the SC, led by CJP Saqib Nisar the Auditor General of Pakistan has been directed to formulate the terms of reference (ToR) for a forensic audit of illegal plot allotments by the civic agency.
CJP Nisar remarked that orchards worth billions were illegally allotted in Islamabad.
I can name the person during whose tenure these allotments were made, CJP Nisar said, adding that people who lands were acquired were given alternative lands in other cities.
Hence, a forensic audit of the allotment and the suspects was necessary.
Meanwhile, Sahiwal Deputy Commissioner told the court that they were conducting an inquiry into the allotment of 1,928 plots of land in the city as alternative plots.
At this, Justice Ahsan asked him to spill the beans now before the allotment records go up in flames.
With a fire igniting in the PID the other day, Justice Ijazul Ahsan remarked that incidents of fire are common in offices where a forensic audit is taking place. He advised that the audit should be completed before the allotment record is set alight.
The case was then adjourned indefinitely.
Published in The Express Tribune, October 26th, 2018.
The top court on Thursday observed that plot next to the convention centre in the federal capital was meant for the construction of a hotel, but one was never built.
This was observed as a three-member bench of the Supreme Court, led by Chief Justice of Pakistan (CJP) Mian Saqib Nisar, admitted an appeal filed by the management of the building being built on One Constitution Avenue.
The building’s management had challenged the decision of a two-member bench of the Islamabad High Court (IHC) against their intra-court appeal. The management has claimed that there are key facts relating to the case were allegedly overlooked by the courts and hence the lease of the land should not be cancelled.
They had also pointed fingers at un-named political figures from Lahore who allegedly conspired to destroy the project.
While hearing the case on Thursday, the court was told that the BNP Group had bought the 13.5-acre plot of land in an auction for Rs4.88 billion with 85 per cent of the money to be paid in instalments over 15 years.
The group’s lawyer, Barrister Ali Zafar said that this was the most expensive lease executed in the history of the federal capital. He further explained that hotel’s construction suffered delays after the October 2005 earthquake which had caused widespread damage in that part of the country.
Moreover, he said that despite the fact they had initially planned to build 45 stories in the tower, they discovered that the building was located in the Red Zone and such a tall building cannot be built in that area, hence the number of floors were cut down 23.
He further argued that flats in the structure were not “sold” but given out on a 99-year lease, even though there was no bar on selling the flats.
At this, CJP Nisar remarked that there was a difference between serviced apartments and a hotel. He added that serviced apartments cannot be sold and giving a 99-year lease was akin to selling it.
“I am reiterating that granting a 99-year lease falls in the category of ‘selling’,” CJP Nisar said, adding that if something cannot be achieved by going through the proper channels, it cannot be done through any other means either.
The Capital Development Authority (CDA) also came under criticism from the top court with CJP Nisar noting that despite multiple violations of the land lease, the civic agency chose to grant the building’s management concessions instead of taking action.
CJP Nisar remarked that the case was apparently one more in a long list of contentious leases granted by former CDA chairman Kamran Lashari.
Justice Ijazul Ahsan said that this land was originally meant for the construction of a memorial or related structure. He added that the duration of lease for a serviced apartment is usually a month or two. While answering a question, Barrister Zafar told the court that the project is a joint venture between three companies including the Bismillah Group, Naya Group and Paragon.
At this, CJP inquired whether Paragon was the same company which had ties to a former government minister?
CJP Nisar, however, tellingly noted that since such a large structure has already been erected, it was not feasible to demolish it.
The court accepted the appeal for hearing but directed the apex anti-corruption watchdog, the National Accountability Bureau (NAB), to continue its probe into the project.
The CJP assured the plaintiff that the SC will issue its verdict in the case even if the parties involved reach some sort of a compromise
The hearing was then adjourned indefinitely.
Forensic audit of allotment documents
Meanwhile, in a separate case on illegal allotment of plots by the CDA, a three-member bench of the SC, led by CJP Saqib Nisar the Auditor General of Pakistan has been directed to formulate the terms of reference (ToR) for a forensic audit of illegal plot allotments by the civic agency.
CJP Nisar remarked that orchards worth billions were illegally allotted in Islamabad.
I can name the person during whose tenure these allotments were made, CJP Nisar said, adding that people who lands were acquired were given alternative lands in other cities.
Hence, a forensic audit of the allotment and the suspects was necessary.
Meanwhile, Sahiwal Deputy Commissioner told the court that they were conducting an inquiry into the allotment of 1,928 plots of land in the city as alternative plots.
At this, Justice Ahsan asked him to spill the beans now before the allotment records go up in flames.
With a fire igniting in the PID the other day, Justice Ijazul Ahsan remarked that incidents of fire are common in offices where a forensic audit is taking place. He advised that the audit should be completed before the allotment record is set alight.
The case was then adjourned indefinitely.
Published in The Express Tribune, October 26th, 2018.