TIMES REPORT
ISLAMABAD: The case of One Constitution Avenue has come under renewed scrutiny amid allegations of legal irregularities, lease modifications, and large-scale financial gains linked to its conversion from a restricted hotel project into a luxury residential development.
Originally, the plot on Constitution Avenue in Islamabad was reportedly not part of the city’s master plan and was later allocated for a five-star hotel only, with no approval for residential apartments or commercial sale. Early advertisements in 2004 also described the project solely as a hotel, with no mention of apartment units.
However, the project was later developed into a luxury residential tower, with hundreds of apartments reportedly sold for billions of rupees. According to available records, the winning bid was set at Rs 75,000 per square yard under strict usage restrictions, significantly lower than comparable commercial plots such as Centaurus Islamabad, which were priced at around Rs 190,000 per square yard due to broader commercial permissions.
The original consortium included Bismillah Textiles, Niagara Mills, Paragon City, and Belhasa International, but the lease was eventually executed in the name of BNP Private Limited, which was not part of the bidding process—raising questions about procedural transparency.
Official documents reportedly acknowledged that serviced apartments were only permissible within a hotel structure and could not be sold independently. Despite this, approximately 240 apartments were later sold, generating over Rs 7.19 billion, while payments to the Capital Development Authority (CDA) stood at Rs 1.22 billion, leaving a significant financial gap.
Audit reports and the Public Accounts Committee have previously flagged alleged amendments to lease terms, extensions in payment schedules, and relaxation of conditions, which are said to have caused financial loss to the national exchequer. The matter has also drawn the attention of accountability institutions, including NAB and FIA.
Court observations reportedly note that no formal record exists showing approval for converting the plot into residential apartments, adding further legal ambiguity to the project’s status.
Apartment prices in the tower have reached exceptionally high levels, with two-bedroom units reportedly selling for around USD 500,000 (Rs 150–200 million), while larger units have fetched even higher values in the luxury market.
The report also references claims regarding ownership and allotment of units, including allegations involving high-profile individuals, though these remain subject to verification in legal proceedings. It is further alleged that some units were provided on preferential or zero-cost terms, while financial structuring included a zero-premium loan arrangement through the Bank of Punjab.
The development process is described as a chain of events involving state land allocation, restricted use approval, lease modifications, financial restructuring, apartment sales, and subsequent regulatory disputes.
The matter continues to be under legal and institutional review, with calls for transparency regarding ownership details, lease changes, and financial accountability.
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