What is Islamabad’s One Constitution Avenue Case?

Islamabad is a city of wide roads and beautiful greenery. But if you drive down Constitution Avenue, you will see a massive twin-tower building reaching for the clouds. This is One Constitution Avenue. On paper, it was supposed to be the pride of the capital. Today, it is the center of one of the biggest legal messes in Pakistan’s history.

Recently, the building became a battleground. Police arrived at midnight. Families were told to leave their homes in 12 hours. People were crying on the streets. But why? How did a luxury project turn into a nightmare? To understand this, we have to go back twenty years.

How It Started?

Back in 2004, the Capital Development Authority (CDA) decided to auction a prime piece of land. This wasn’t just any land. It was right next to the Parliament and the Supreme Court. It was the most expensive and prestigious spot in the country.

A company called BNP Group won the auction.

Deal of One Constitution Avenue

The deal was simple:

1. The land was given on a 99-year lease.

2. The price was around Rs 4.8 Billion.

3. The goal was to build a Grand 5-Star Hotel and serviced apartments for tourists and high-profile guests.

The CDA wanted a landmark. The company wanted a profit. It seemed like a win-win. But very soon, things started going off track.

First Red Flag

Changing the Plan: The lease agreement was very specific. The main building had to be a hotel. This is important because hotel land is treated differently than residential land.

However, the BNP Group did something unexpected. Instead of focusing on the hotel, they started building 250 luxury residential apartments. They started selling these to the public. High-profile politicians, famous lawyers, and wealthy overseas Pakistanis bought them. Some paid over Rs 50 million for a single flat.

The Problem?

The CDA had never officially allowed the building to be turned into a permanent housing colony. The company was selling something they didn’t technically have the right to sell as “private homes.”

The Money Trail

The Bank Loan Mystery: This is where the story gets even more complicated. To build such a massive project, you need billions of rupees.

The BNP Group went to the Bank of Punjab. They asked for a loan of Rs 3.5 Billion. To get a loan, you usually have to give the bank a guarantee (collateral). The company gave the bank the documents of the One Constitution Avenue land. But the company didn’t “own” the land yet. They were still paying the CDA in installments.

They had only paid about Rs 2.9 Billion out of the total billions they owed. Legally, you cannot mortgage a property that you don’t fully own without a special “No Objection Certificate” (NOC) from the owner (CDA).

The CDA claims the company did this “fraudulently.” They allegedly took a loan on a property that wasn’t theirs to pledge. Even worse, the company then stopped paying the bank. They also stopped paying the CDA. They were in “Default” on both sides.

The Court Battles

For years, this case moved through the courts like a slow-motion car crash.

In 2016: The CDA finally got tired of the non-payments and the violations. They cancelled the lease.

In 2017: The Islamabad High Court upheld the cancellation. They called the project a “classic example of state land being gifted to a private party.”

In 2019: The Supreme Court tried to find a middle ground. Former Chief Justice Saqib Nisar ordered the company to pay Rs 17.5 Billion to the CDA over eight years to settle the debt and regularize the building.The company paid the first installment. But then, they stopped again. They claimed they didn’t have the money. They tried to offer the CDA some of the shops and apartments in the building instead of cash. The CDA refused. They wanted the money.

The Midnight Raid 2026: On the night of Thursday, April 30, 2026, the situation at One Constitution Avenue turned into a nightmare. Just hours after the Islamabad High Court upheld the lease cancellation, a heavy contingent of police and CDA officials arrived at the building. At 1:00 AM, while residents were asleep, officers began banging on doors. Families were given a shocking 12-hour ultimatum to pack their lives and leave. By Friday afternoon, the streets were filled with mini-trucks and distressed residents, including children and the elderly, who had nowhere to go.

Imagine being a resident, you paid your hard-earned money to a famous company. You saw a giant building. You moved in. Now, the police are banging on your door at 1 AM saying you are a “trespasser.”

The residents weren’t the ones who committed the fraud. The builder did. But the law was coming for the building, and they were inside it. Social media was flooded with videos of elderly people and children sitting on suitcases on the sidewalk. It looked like a scene from a war zone, not a posh neighborhood in Islamabad.

Prime Minister Steps In

Prime Minister Shehbaz Sharif saw the situation. He realized that throwing 70 families onto the street on a Friday afternoon was a disaster. He issued an immediate order to halt the operation.

Prime Minister Shehbaz Sharif Steps in for One Constitution Avenue

He formed a committee led by Law Minister Azam Nazeer Tarar. This committee has a tough job:

1. They have to protect the rights of the residents who bought the flats in good faith.

2. They have to make sure the government (CDA) gets its billions of rupees.

3. They have to punish the company for violating the law.

What Happens Next?

Right now, the building is in a “freeze” state. The police have left, but the lease is still cancelled. The committee has one week to find a solution. The most likely outcome is a “Regularization” deal. The residents might have to pay a small penalty, and the builder might be forced to sell other assets to pay the CDA. But one thing is for sure: the reputation of One Constitution Avenue is stained.

Author

Rumman Mustafa

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