ISLAMABAD: The Public Accounts Committee (PAC) on Wednesday directed the Capital Development Authority (CDA) to settle an old dispute with M/s BNP, the developer of the Grand Hyatt Hotel on Constitution Avenue.

PAC Chairman Rana Tanvir Hussain asked the CEO of the firm to deposit outstanding dues as determined by the Supreme Court.

The CEO, Hafeez Pasha, said he does not have an issue with paying the outstanding dues, but added that the National Accountability Bureau (NAB) is conducting an inquiry into this matter.

Mr Hussain said NAB did not stop to settle the outstanding sum, and asked Mr Pasha to pay the instalments in accordance with SC guidelines.

In August 2016, the CDA cancelled the lease of the plot meant for the Grand Hyatt Hotel because the developer had instead built and sold residential apartments.

The Islamabad High Court (IHC) upheld the CDA’s decision, but the SC restored the lease last January and directed M/s BNP to pay the CDA Rs17.5 billion over eight years.

Buyers of apartments built on land for a luxury hotel include Prime Minister Imran Khan, former chief justice of Pakistan Nasirul Mulk, Pakistan Cricket Board Chairman Ehsan Mani, Khawaja Mohammad Asif and Federal Ombudsperson for the Protection of Women Against Sexual Harassment at the Workplace Kashmala Tariq.

As a PAC member, Mr Asif also participated in the discussion on handing over possession of the plot to the builder. He suggested the builder be allowed to resume stalled construction after codal formalities are complete.

CDA Chairman Amer Ali Ahmed told the PAC that he was ready to hand over possession after payment of the agreed amount, but was waiting for a response from NAB.

The Constitution Avenue plot was auctioned for the construction of a luxury hotel, but the approved building plan was more or less mixed-use commercial.

This violated the planning parameters and by-laws approved by the CDA board on Oct 11, 1997.

In the SC, BNP’s counsel adopted that the auction of the plot was conducted in an open and transparent manner and there were no objections from any quarters to date about corruption in the bidding process.

He defended the construction of serviced apartments on the land, saying that the IHC had misconceived the concept and upheld the cancellation of the lease.

Published in Dawn, October 8th, 2020