ISLAMABAD: The developer of the under-construction Grand Hyatt in the capital is yet to deposit the first installment of an outstanding amount to the CDA to get the lease of the plot restored.

The Public Accounts Committee (PAC) at a meeting held on October 7 with Rana Tanveer Hussain in the chair had directed the developer to pay the outstanding amount in accordance with the Supreme Court’s directive, also issued to the CDA, to resolve the issue.

However, so far, the developer has not deposited the first installment in accordance with PAC’s directive to get the lease restored besides de-sealing the project.

CDA officials said they were willing to de-seal the project provided the developer deposited the first installment of Rs1.8 billion out of the total Rs17.5 billion as decided by the apex court last year.

On Oct 7, Public Accounts Committee asked developer to pay outstanding amount in accordance with Supreme Court’s directive

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

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

According to minutes of the PAC meeting: “The chairman PAC pointed out that the National Accountability Bureau (NAB) had clarified that the pendency of proceedings before NAB did not bar CDA to act according to law. Moreover, no direction had been given by NAB to CDA to stop its proceedings. The CDA was at liberty to proceed as per the direction of the Supreme Court.”

The minutes added: “Therefore, the committee reiterated that both the CDA and developer should implement the judgment of the Supreme Court and may execute a letter of readjustment to give effect to the decision if reviewed subsequently by Supreme Court.”

According to minutes, CDA Chairman Amer Ali Ahmed and the developer of the project, Abdul Hafeez Pasha, presented their respective standpoints after which the committee directed that “the developer will pay the first installment as per decision of the Supreme Court which had attained finality as of today and the CDA would resolve the issue of possession of the site and report thereof would be submitted to PAC within 30 days.”

Both the developer and the CDA filed review petitions against the judgment of the Supreme Court announced in January last year.

When contacted, Chairman CDA Amer Ali Ahmed said the CDA would comply with the PAC directive and whenever the developer would pay the first installment of the outstanding amount “immediately we will resolve de-sealing and lease issues with the developer.”

He confirmed to Dawn that so far the first installment out of the Rs17.5 billion had not been received by the CDA.

When contacted, Mr Pasha said he was not avoiding paying the outstanding amount but had filed a review petition in the Supreme Court to reduce the price of the plot and/or to allow more time for payments of installments.

“The project is financially not feasible when the price of the plot has been increased by more than 400 per cent and the payment time has been reduced from 12 to eight years.

“In order to comply with the original order of SC, we have arranged the bank guarantee for the payment of first installment which becomes due on the first anniversary from the commencement date,” he said and added that the CDA had not revived the lease agreement against which the guarantee was to be issued. He said the CDA had also not signed the payment schedule as required by the order of the Supreme Court.

Published in Dawn, October 20th, 2020