PAC Gives 15 Days To CDA For Settlement With Grand Hyatt Hotel's Developer

PAC gives 15 days to CDA for settlement with Grand Hyatt Hotel's developer

ISLAMABAD, (UrduPoint / Pakistan Point News - 2nd Jul, 2020 ) :The Public Accounts Committee (PAC) on Thursday directed the Capital Development Authority (CDA) to act against the developer M's BNP in accordance with the direction of Supreme Court.

PAC Chairman Rana Tanvir Hussain was briefed by Member Estate CDA Naveed Ilahi on the current status of Grand Haytt Hotel.

Rana Tanvir observed as to why no action was initiated against the developer because he had filed a review petition against the SC verdict in the case.

The Member Estate CDA told the committee that the investigation of National Accountability Bureau (NAB) was another hindrance in moving forward.

The committee chairman remarked that with the SC verdict, the NAB's investigation quashed automatically as the apex court had not stayed implementation of its earlier decision. He gave gave 15 days to the CDA to submit progress report with the PAC secretariat in that regard.

In January last year, the SC had reversed the Islamabad High Court's order which upheld the July 2016 cancellation of a plot meant for the Grand Hyatt Hotel by the CDA over violations of building by-laws.

Through its lawyer Barrister Syed Ali Zafar, BNP in December last year had offered that they were ready to pay the CDA Rs15 billion for regularization of the plot over a 20-year period, on the assurance that an ongoing inquiry by the NAB would be dropped and they would be permitted to utilize the land for commercial ventures without any interference or restrictions from the civic authority.

However, the company's proposal was rejected by the CDA at that time.

Later, the apex court gave BNP eight years to complete the payment of Rs17.5 billion in instalments for the plot's lease to CDA.

However, the CDA and the BNP had filed review petition against the said decision and resultantly now once again the apex court has asked the civic body to submit its recommendations in the case.

A summary in this regard was placed before Capital Development Authority board by estate management directorate in which it was recommended that instead of going for any settlement with M/s BNP, the authority should contest its case in Supreme Court.

M/s BNP was allotted the said plot for the purpose of constructing a luxury Grand Hyatt Hotel in 2004, but it instead built luxury apartments that were sold to various buyers.