ISLAMABAD – Interior Minister Mohsin Naqvi on Wednesday announced plans to transform Islamabad’s controversial One Constitution Avenue luxury residential complex into five-star hotel within the next few months after the federal cabinet’s approval of the long-awaited Joint Investigation Team (JIT) report into the disputed property.
Addressing presser, Naqvi confirmed that Capital Development Authority (CDA) had already taken possession of the high-profile building, which has remained at the centre of legal battles, financial controversies and disputes involving influential apartment owners.
“The building was in our possession before, and it remains in our possession today,” Naqvi said, adding that the government intended to convert the premises into a five-star hotel in the coming months. Minister said the JIT findings had been presented before the federal cabinet and formally approved, marking another significant development in the long-running controversy.
He praised the CDA chairman, the authority’s legal team and Prime Minister Shehbaz Sharif for their support in resolving the matter.
Refunds to One Constitution Avenue Investors
Naqvi assured individuals who had invested in the luxury residential project that their payments would be returned. He announced that the CDA’s Member Administration would immediately assume responsibility for managing the building and overseeing matters related to the property.
He did not specify when refunds would begin, how compensation would be calculated or whether investors would receive amounts beyond their original payments. Naqvi also disclosed that the government had faced considerable pressure during its efforts to recover the property but declined to identify those responsible.
Recalling the controversial takeover, he said officials encountered circumstances that left them deeply disappointed. The minister maintained that government land would be recovered regardless of the influence or financial position of those occupying it.
“There should not be one law for the poor and another for the rich,” he declared, emphasizing that no concessions would be granted to illegal occupants of state property.
One Constitution Avenue Controversy
Located near Islamabad’s Jinnah Convention Centre, One Constitution Avenue is a prominent twin-tower development constructed on valuable land originally designated for a luxury hotel. The controversy dates back to 2005, when the CDA auctioned approximately 13.5 acres of land to BNP Group for around Rs4.88 billion.
The project was initially planned as the Grand Hyatt Islamabad, a five-star hotel expected to become a major hospitality landmark in the federal capital. However, the development eventually included luxury residential apartments, attracting wealthy buyers, business figures and prominent personalities.
Questions subsequently emerged over the project’s approved land use, alleged violations of lease conditions and outstanding payments owed to the CDA.
The dispute intensified in 2016 when the CDA cancelled the developer’s lease, citing alleged breaches of contractual obligations. Islamabad High Court initially upheld the cancellation, but the Supreme Court restored the lease in January 2019 under revised financial conditions.
The apex court directed the developer to pay Rs17.5 billion over eight years and allowed the CDA to terminate the agreement following the required notice if payment obligations were not fulfilled. Financial disagreements continued, eventually prompting the CDA to pursue fresh termination proceedings.
BoP, other flat owners challenge IHC verdict against One Constitution Avenue lease
