The Capital Development Authority (CDA) allocated 13.5 acres of prime land in 2005 for the development of a five-star hotel project. BNP secured the lease through a competitive bid of PKR 4.8 billion and was granted possession after an initial 15% payment.
However the company failed to clear the remaining dues leading to prolonged delays, restructuring attempts, and legal disputes. The matter ultimately reached the Supreme Court which in 2019 directed BNP to pay PKR 17.5 billion for restoration of the lease.
Despite the ruling the company has only deposited PKR 2.9 billion so far leaving an outstanding amount of approximately PKR 14.5 billion. In light of continued non-compliance, the lease was formally cancelled in 2023.
During the course of development, 263 residential apartments were constructed on the disputed property, reportedly in violation of the original lease agreement.
CDA had issued public notices clearly stating that the project was legally contested and warned prospective buyers that any investment would be at their own risk. Despite these warnings, transactions in the apartments continued in the market.
Available data suggests that only 69 of the 263 apartments are currently occupied, while the majority remain part of ongoing property trading activity. Even within occupied units, many are being used as short-term or rental investments rather than permanent residences.
Following directives from the Islamabad High Court, CDA, in coordination with Islamabad Police issued notices requiring occupants to vacate the premises within seven days in compliance with court orders.
While CDA had previously cautioned all stakeholders regarding the legal status of the project, the government has now indicated that affected occupants may be compensated based on the original purchase value of their units.
