hydrabadi_arab
Trusted Member
The federal government on Wednesday announced plans to convert Islamabad's controversial One Constitution Avenue residential complex into a five-star hotel after the federal cabinet approved a joint investigation team (JIT) report identifying alleged fraud, irregularities and manipulation in the project's development.
Addressing a press conference, Planning Minister Ahsan Iqbal said the investigation found that the project's bidding process had been manipulated, regulations relaxed to favour developers and apartments sold illegally despite the project's original approval as a five-star hotel.
The JIT, comprising representatives from the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), Intelligence Bureau (IB) and Inter-Services Intelligence (ISI), submitted its findings to the cabinet.
Iqbal said the report identified Abdul Hafeez Sheikh as an alleged mastermind and implicated several former Capital Development Authority (CDA) officials, including former chairman Kamran Lashari, in facilitating irregularities.
According to the minister, bank guarantee requirements were removed to benefit the developers, while the alleged manipulation resulted in financial losses to the national exchequer and apartment purchasers.
The JIT recommended blacklisting Sheikh and his company from future public projects, initiating legal proceedings against those involved and conducting a transparent auction to restore the building's original purpose.
Iqbal said the government had also decided to compensate affected investors by refunding their principal investments with adjustments linked to the Karachi Interbank Offered Rate (KIBOR).
The report further recommended restructuring the CDA, establishing an independent master plan commission, digitising official records and rotating officers between planning, enforcement and building control departments every two years.
Separately, Interior Minister Mohsin Naqvi said the government had legally regained possession of the building following the cabinet's approval and intended to convert it into a five-star hotel within months.
Naqvi said negotiations would be pursued with a major international hotel chain, citing a shortage of hotel accommodation in Islamabad.
The building's lease had previously been cancelled by the CDA over payment defaults, a decision upheld by the Islamabad High Court in April 2026. Subsequent evictions of residents in May prompted Prime Minister Shehbaz Sharif to constitute the JIT.
The interior minister also announced the dissolution of the building's residents' management committee, with a CDA member assuming responsibility for its affairs.
Meanwhile, NAB has been directed to pursue further investigations and proceedings against individuals allegedly involved in the project.
Addressing a press conference, Planning Minister Ahsan Iqbal said the investigation found that the project's bidding process had been manipulated, regulations relaxed to favour developers and apartments sold illegally despite the project's original approval as a five-star hotel.
The JIT, comprising representatives from the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), Intelligence Bureau (IB) and Inter-Services Intelligence (ISI), submitted its findings to the cabinet.
Iqbal said the report identified Abdul Hafeez Sheikh as an alleged mastermind and implicated several former Capital Development Authority (CDA) officials, including former chairman Kamran Lashari, in facilitating irregularities.
According to the minister, bank guarantee requirements were removed to benefit the developers, while the alleged manipulation resulted in financial losses to the national exchequer and apartment purchasers.
The JIT recommended blacklisting Sheikh and his company from future public projects, initiating legal proceedings against those involved and conducting a transparent auction to restore the building's original purpose.
Iqbal said the government had also decided to compensate affected investors by refunding their principal investments with adjustments linked to the Karachi Interbank Offered Rate (KIBOR).
The report further recommended restructuring the CDA, establishing an independent master plan commission, digitising official records and rotating officers between planning, enforcement and building control departments every two years.
Separately, Interior Minister Mohsin Naqvi said the government had legally regained possession of the building following the cabinet's approval and intended to convert it into a five-star hotel within months.
Naqvi said negotiations would be pursued with a major international hotel chain, citing a shortage of hotel accommodation in Islamabad.
The building's lease had previously been cancelled by the CDA over payment defaults, a decision upheld by the Islamabad High Court in April 2026. Subsequent evictions of residents in May prompted Prime Minister Shehbaz Sharif to constitute the JIT.
The interior minister also announced the dissolution of the building's residents' management committee, with a CDA member assuming responsibility for its affairs.
Meanwhile, NAB has been directed to pursue further investigations and proceedings against individuals allegedly involved in the project.
