EDITORIAL: Interior Minister Mohsin Naqvi and Minister of State Talal Chaudhry revealed in a press briefing that the government has obtained legal possession of the infamous 13.5-acre One Constitution Avenue building.
The Capital Development Authority (CDA) originally leased the property for 99 years in 2005 specifically to build a five-star hotel and serviced apartments. The project became infamous after the builders, with the connivance of influential people, were accused of irregularities, manipulation, and corruption.
Strategically located on Constitution Avenue, the building was later converted into luxury apartments and commercial areas with the assistance of key decision-makers, and sold to a ‘who’s who’ of Pakistani politicians and power players, with many not in a position of power today, which led to legal battles, default on payments, and periodic high profile investigations - including a Joint Investigation Team report this year — alongside the cancellation of lease by the CDA.
The CDA went into litigation, and in 2016 the Islamabad High Court ruled in its favour, labelling the project illegal. The builder obtained a stay order and challenged the judgement through an appeal, which was upheld by the IHC in 2018. The following year the then Chief Justice of Pakistan, Saqib Nisar, took a suo moto notice and ruled that the project may be illegal but investors (purchasers of luxury flats) must be protected subject to the payment of 17.5 billion rupees over 8 years to CDA; interestingly, one of the members of the bench, Ijazul Ahsan, was the builder’s private lawyer prior to his appointment as a high court judge.
At a separate press conference held the same day, Minister for Planning, Development, and Special Initiatives Ahsan Iqbal—flanked by Information Minister Attaullah Tarar and Talal Chaudhary—revealed that the JIT had accused former three-time Finance Minister Hafeez Sheikh and then-CDA Chairman Lashari of masterminding the irregularities. The JIT, he further noted, had recommended blacklisting Hafeez Sheikh’s company from future public sector projects and initiating legal action against all those responsible.
Mohsin Naqvi declared that the building will be converted into a five-star hotel — reflecting the original intent when the lease was granted twenty years ago - and that an agreement with an international chain would be reached. He did not mention whether service apartments that were a component of the original lease would be allowed in the agreement with the international chain. However, one would hope that the government exercises extreme caution when awarding the contract to an international chain, given the high percentage of litigation/arbitration in contractual agreements with foreign companies and/or governments.
Holding two press conferences by two senior federal ministers on the same subject seems to indicate a lack of harmony at best or rivalry at worst. True, Talal Chaudhary was present at both press conferences, yet he remained quiet, allowing his seniors to convey their thoughts on a highly controversial, long-standing project. Nevertheless, one would hope that the government succeeds in resolving all outstanding issues relating to this prominent building in the federal capital and, as previously mentioned, ensures that the contract is carefully vetted by lawyers with experience in this field.
Copyright Business Recorder, 2026
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