Islamabad’s One Constitution Avenue project: Ahsan says JIT has found serious irregularities, fraud

ISLAMABAD: Minister for Planning and Development Ahsan Iqbal said on Wednesday that a joint investigation team (JIT) had found serious irregularities and fraud in Islamabad’s One Constitution Avenue project, including manipulation of the bidding process and illegal sale of apartments.

The inquiry identified former finance minister Abdul Hafeez Sheikh as the alleged mastermind, along with former Capital Development Authority (CDA) chairman Kamran Lashari and several other officials.

Announcing the findings at a press conference alongside Information Minister Attaullah Tarar and State Minister for Interior Talal Chaudhry, Iqbal said the JIT had submitted its report to the federal cabinet, which had approved its recommendations.

The JIT comprised representatives of 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).

According to Iqbal, the investigation found that bidding and auction processes had been manipulated, rules relaxed to favour a particular party and the company awarded the lease was ineligible.

The requirement for a bank guarantee had also been removed to benefit the developer, while the CDA was found involved in the irregularities.

Apartments had been sold illegally despite the project originally being approved as a five-star hotel, he said.

The JIT identified Sheikh as the mastermind, along with CDA officials Kamran Lashari, Dr Faisal Awan, Uzair Ali Chaudhry, Brig Nasrullah (Retd) and the late Rai Nawaz Kharal.

The irregularities had caused losses to the national exchequer and defrauded several Pakistani citizens of their savings, the minister added.

The report recommended blacklisting Sheikh and his company from future public-sector projects and initiating legal action against those responsible.

It also proposed restoring the project to its original purpose, holding a fresh and transparent auction, renaming it, obtaining security clearances and ensuring compliance with fire safety protocols.

Iqbal said the government had decided to compensate affected investors by refunding their principal amounts with interest calculated at the Karachi Interbank Offered Rate (KIBOR).

The JIT also recommended reviewing the CDA Ordinance, establishing an independent Master Plan Commission, digitising official records and introducing a two-year rotation policy for officers in the State Planning, Enforcement and Building Control Departments. It further proposed engaging third-party experts for pre-audits, auctions and contract-related matters.

Iqbal said NAB had been directed to investigate all individuals named in the report and take action under the relevant laws, including against those who facilitated or provided backing to the accused.

Information Minister Attaullah Tarar said Prime Minister Shehbaz Sharif believed there should be no distinction between the rich and the poor.

He said the JIT had recommended protecting bona fide purchasers who had invested their lawful earnings in the project, whether residing in Pakistan or abroad.

Such investors would be compensated for their assets in view of the proposed redesign and restructuring, he added.

Tarar said the NAB investigation would be completed within three months and the trial process would also begin.

State Minister for Interior Talal Chaudhry said the project had remained under consideration for nearly two decades, with major action taken against it twice during PML-N governments.

He said the matter should not be viewed as political point-scoring, adding that some individuals, including jailed former prime minister Imran Khan, had yet to explain how they acquired their apartments.

Copyright Business Recorder, 2026