ISLAMABAD: The controversy surrounding the Grand Hyatt (BNP) project has resurfaced, with fresh enforcement actions highlighting long-standing legal and financial irregularities.
The Capital Development Authority (CDA) allotted 13.5 acres of land in 2005 for the construction of a five-star hotel. The BNP company secured the lease for Rs4.8 billion and was granted possession of the land after making an initial 15% payment.
However, the company failed to make subsequent payments, leading to repeated rescheduling arrangements.
The matter eventually reached the Supreme Court, which in 2019 ordered BNP to pay Rs17.5 billion to restore the lease. Despite the ruling, the company has so far paid only Rs2.9 billion, leaving outstanding dues of approximately Rs14.5 billion. As a result, the lease was formally cancelled in 2023.
In addition to payment defaults, BNP violated the original agreement by constructing 263 residential apartments on the site instead of a hotel. The CDA had publicly warned potential buyers by placing notices outside the building, stating that purchasers of apartments in the disputed project would bear responsibility for any consequences. Despite these warnings, the buying and selling of units continued.
Out of the 263 apartments, only 69 are currently occupied, while the remaining 194 units are largely held by property investors for trading purposes. Among the occupied units, only around 15% are used for permanent residence, with the remaining 85% reportedly being utilized for short-term rentals.
Following orders from the Islamabad High Court, CDA officials, accompanied by Islamabad Police, recently visited the site and issued seven-day notices to occupants, directing them to vacate the apartments in compliance with the court’s instructions.
Although prior warnings had been issued, the government has now decided, as a relief measure, to compensate affected individuals by paying the original purchase price of the apartments.
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