IHC issues detailed verdict in One Constitution Avenue case, rules buyers have no legal claim to ownership

Court directs investors to seek redress from the appropriate forum

The Islamabad High Court (IHC) on Monday issued a detailed verdict on the One Constitution Avenue project, upholding the Capital Development Authority's (CDA) decision and ruling that the buyers lack ownership rights.

The petition, filed by BNP Ltd, was rejected after the court ruled that the CDA’s actions were in line with the legal requirements set by the Supreme Court.

The court stated that the buyers lacked ownership rights, as the project’s lease had been terminated and the proper legal processes had not been followed regarding the transfer of ownership.

Chief Justice Sardar Mohammad Sarfraz Dogar delivered the written judgment, confirming that the CDA’s decision was in accordance with the financial conditions outlined by the Supreme Court in its earlier rulings.

In a further blow to the petitioner, the court also rejected BNP Ltd's execution petition and disposed of the investors' requests, directing them to seek redress from the appropriate forum.

The petitioner's failure to meet the financial obligations set by the SC was central to the court’s decision. The petitioner had failed to deposit the second instalment of 2.916 billion rupees due in 2022, despite repeated reminders from the CDA.

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The court dismissed the petitioner’s objection regarding the 30-day notice period as a technical flaw, ruling it legally invalid. The court also reaffirmed that the cancellation of the lease was entirely consistent with the Supreme Court’s decision, which had mandated the payment of 17.5 billion rupees over eight years, starting in 2019.

BNP Ltd had made the payment for the 2021 instalment but defaulted on the 2022 payment, leading the CDA to issue a notice on February 7, 2023, followed by the cancellation order on March 8.

The court also deemed the 500 million rupees cheque submitted by the petitioner as insufficient to satisfy the outstanding payments.

On Friday, Prime Minister Shehbaz Sharif constituted a high-level committee to review the matter of One Constitution Avenue after authorities took control of a multi-storey residential building following a ruling by the IHC in a long-running dispute over the cancellation of its lease.

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The committee was tasked with examining all aspects of the issue and submitting a comprehensive report to the prime minister within one week. During this period, all affected individuals would be allowed to present their concerns before the committee, which would hear all parties and stakeholders without any discrimination.

Until a final decision was taken by the prime minister, the Islamabad administration and the Capital Development Authority (CDA) would refrain from taking any further action in the matter.

The project originally stems from a 13.5-acre plot awarded to BNP Group following an auction on March 9, 2005, for Rs4.88 billion. Although possession was handed over the same year after an initial payment of Rs800 million, BNP has so far paid Rs1.02b, while the remaining Rs3.85b is recoverable in instalments until 2026.

In July 2016, the CDA cancelled the lease, citing multiple violations. The decision was upheld by the IHC in 2017, which also declared the conversion of a planned five-star hotel into luxury apartments illegal. However, the Supreme Court set aside that judgment in early 2019, directing the developer to pay Rs17.5b in instalments over eight years.

The CDA argued that BNP failed to meet its financial obligations after 21 years, maintaining that full ownership was conditional upon 100% payment of the land cost. Of the total Rs17.5b liability, only Rs2.9b — around 16.6% — has reportedly been paid.

The complex is reported to include apartments owned by several prominent figures, including Pakistan Tehreek-e-Insaf founder Imran Khan, Chaudhry Aitzaz Ahsan, Shandana Gulzar Aurangzeb, former minister Burjees Tahir, former caretaker prime minister Nasirul Mulk and Kashmala Tariq.