ISLAMABAD: The Supreme Court upheld the decision of the Capital Development Authority (CDA) to cancel the lease deed of 13.5 acres’ plot (One Constitution Avenue) to BNP (Pvt) Limited, a private company.

A three-judge bench, headed by Chief Justice Umar Ata Bandial, and comprising Justice Ijazul Ahsan and Justice Ayesha A Malik heard the review petition of BNP (Pvt) Limited (the developers of One Constitution Avenue).

CDA counsel Munir Paracha informed the bench that the civic body has canceled the lease deed of One Constitution Avenue and took over its possession. He told that the company as per the Supreme Court judgment did not fulfil its commitments, adding in 2020 it paid some amount, but later on, no payment was made to the CDA.

Barrister Ali Zafar, representing the private firm, argued that they have filed the review petition before the Supreme Court, which was not heard earlier. The SC judgment had increased the payment and reduced the time frame.

Justice Ijaz asked the counsel at that time you agreed with the Court’s decision, and partly performed. He said if you would have said that Rs17.5 billion was a much higher amount and it should have been Rs10 billion…, but now nothing will happen. Ali Zafar requested to increase the time frame. However, the Court directed him to pursue the remedy in accordance with law and disposed of the case for being infructuous.

The CDA had cancelled the lease of the plot to BNP in July 2016 due to a number of violations and irregularities. The Islamabad High Court (IHC) upheld the CDA’s decision. However, in 2019 a Supreme Court bench comprising then chief justice Saqib Nisar, Justice Ahsan and Justice Faisal Arab restored the lease in 2019, directing the private firm to pay the CDA Rs17.5 billion in eight years.

In view of the SC judgment, the developer was supposed to deposit Rs17.5 billion in installments in eight years. The company deposited the first installment of Rs1.7 billion and later, reneged on its commitment and also filed the review petition against the apex court’s ruling.

The Public Accounts Committee (PAC) in February this year directed the National Accountability Bureau (NAB) to investigate the non-payment of the amount. The CDA subsequently again cancelled the lease of the plot in March.

The CDA in 2005 auctioned the 13.5 acres for Rs4.8 billion and handed over its possession to the company after receiving only Rs800 million the same year. By 2016-17, only Rs1.02 billion of the remaining amount had been paid to the civic agency.

Copyright Business Recorder, 2023