ISLAMABAD: The Supreme Court on Thursday expressed dissatisfaction over a proposal submitted by a private developer for the regularisation of a cancelled plot meant for the Grand Hyatt hotel.

An SC bench comprising Chief Justice Mian Saqib Nisar, Justice Ijazul Ahsan and Justice Faisal Arab resumed hearing an appeal filed by M/s BNP against an Islamabad High Court order upholding the July 2016 cancellation of the plot by the Capital Development Authority (CDA) over violations of building by-laws.

M/s BNP was allotted a plot for the purpose of constructing a luxury hotel in 2004, but it instead built luxury apartments that were sold to various buyers. These buyers include high-profile figures such as Prime Minister Imran Khan.

Through its lawyer Barrister Syed Ali Zafar, BNP offered that they were reading to pay the CDA Rs15 billion for the regularisation of the plot over a 20-year period, on the assurance that an ongoing inquiry by the National Accountability Bureau (NAB) would be dropped and they would be permitted to utilise the land for commercial ventures without any interference or restrictions from the CDA.

The bench expressed surprise that the developer set a 20-year period to clear the CDA’s dues.

The chief justice also remarked that they were surprised “to note that you paid just Rs1bn since 2004”.

Mr Zafar said he had already explained that the project could not commence due to the earthquake.

The BNP proposal stated: “the original bid [for the hotel plot] was Rs4.8 billion out of which the appellant has already paid an amount of Rs1.23 billion while the remaining Rs3.6 billion was agreed to be paid in instalments in 11 years by 2026.

“The appellant may be allowed to continue to pay the amount of Rs3.6 billion in the already agreed 11 instalments commencing in 2019 as soon as the revised plans are approved/all NOCs issued by CDA/government and the instalments of the enhanced bid amount to be paid thereafter in subsequent 11 years.”

According to the payment schedule attached to the proposal, the company sought until 20138 to clear the CDA’s outstanding dues.

In its response, the CDA said the “real market value of any plot could only be determined by market forces through open auction provided that the land use/purpose and planning parameters along with floor area ratio are clearly defined in the auction brochure which wasn’t the case at the time of disposal of the subject plot.”

On Thursday Justice Nisar asked why the court would not ask the CDA to refund whatever the developer has paid the authority so far, evaluate the cost of the under-construction building to compensate buyers and dispose of the land in an open auction.

Mr Zafar insisted that his client was ready to pay the revised sum of Rs15bn. The bench reminded him that BNP has to pay Rs19.8bn, since the Rs15bn would be paid in addition to the initial sum of Rs4.8bn, which would be paid in the next three years.

Mr Zafar expressed inability to deposit the sum in three years, saying his client would clear all dues by 2038. When the bench was not convinced, Mr Zafar said his client could manage to clear all outstanding dues by 2027.

Justice Nisar observed that the proposal was reasonable and asked the CDA to consider it at its next board meeting.

CDA’s counsel Mohammad Munir Paracha argued before the court that the IHC had pointed out criminalities in the deal, owing to which several CDA officials are facing a criminal case.

He said the IHC had constituted a special committee to compensate the affected buyers, but the SC has issued a stay order in this regard.

The bench directed that the revised proposal be placed before the federal cabinet by Dec 24 and adjourned hearing until Dec 28.

Published in Dawn, December 14th, 2018