ISLAMABAD: The Capital Development Authority (CDA) has asked the BNP Group – a private construction firm – to approach the Supreme Court after the latter approached the civic body for “settlement of pending litigation” and offered to transfer a piece of commercial land to settle the issue.

The BNP project, One Constitutional Avenue, was de-sealed in 2021 after almost five years following a judgement by a three-member SC bench headed by then chief justice Saqib Nisar.

In line with the 2019 verdict, the developer deposited Rs1.7 billion in the CDA account which was the first instalment of the total Rs17.5 billion settlement.

The building was sealed and lease of the plot was also cancelled, as the plot was meant for the construction of a hotel but the developer had built and sold residential apartments instead.

However, now instead of making the pending payments, the developer floated a proposal in August this year wherein it offered the CDA a commercial piece of land valued at Rs9.6 billion to settle the issue once and for all.

AGP office says proposal to hand over commercial land instead of money better outcome for civic body

Due to current economic conditions, “it has become impossible for us to complete the project and also make the annual installment of Rs2.92 billion,” the developer said in a letter to the CDA.

The present value of the balance amount of Rs14.583 billion, according to the developer, comes to Rs9.46 billion following a 15.57pc KIBOR discount as per term and reference of the lease agreement.

“The CDA will become the exclusive owner of the said commercial property in lieu of the balance “discounted” lease amount payable and will be at the liberty to use, rent or sell the commercial area,” the developer added in its letter to the civic body.

After receiving the letter, the sources said the member estate decided to approach the attorney general for an opinion. In its response, the attorney general office said both the CDA and developer were bound by the top court ruling.

Secretary Khalid Khan Niazi said the proposal of the developer appeared to be a lawful and reasonable way to conclusively settle all outstanding litigation.

The secretary stated: “The benefit to CDA from the implementation of the proposal is a better outcome for CDA than if BNP were to be successful in its review, which is a possibility given the lack of reasoning in support of the SC order and given the admitted inability of the

CDA to find a solution to the problem of the third parties, in whose favour rights have been created.”

In case the CDA “decides to accept the proposal, then the civic body and BNP will have to make a joint application in the SC” along with the BNP praying for the litigation to be disposed of.

After the said opinion, Member Estate Naveed Ilahi, through a letter on Aug 16, asked the developer to approach the top court “for disposal of the subject case as per the proposals submitted to this office for settlement of pending litigation”.

Published in Dawn, August 31st, 2022