Aik News:The long-running Grand Hyatt / BNP lease case in Islamabad has taken another major turn, as authorities move to reclaim the property over unpaid dues and legal violations, while offering compensation to some buyers.
The Capital Development Authority (CDA) allotted 13.5 acres of land in 2005 for the construction of a five-star hotel. The project was awarded to BNP (a private company) after it secured the lease for Rs 4.8 billion. The CDA handed over possession after receiving only 15% of the payment, allowing construction to begin.
However, the company failed to make further payments and repeatedly sought rescheduling of its financial obligations. The dispute eventually reached the Supreme Court of Pakistan, which in 2019 ordered BNP to pay Rs 17.5 billion to restore the lease.
Despite the court’s order, BNP has so far paid only Rs 2.9 billion, leaving outstanding dues of approximately Rs 14.5 billion. Due to continued non-payment, the CDA cancelled the lease in 2023.
In addition to payment defaults, the company also violated the original agreement by constructing 263 residential apartments on land designated for a hotel. The CDA had publicly warned buyers by placing notices at the site, stating that purchasing flats in the disputed building would be at their own risk. Despite these warnings, buying and selling continued.
Out of the 263 apartments, only 69 are currently occupied. Reports suggest that just 15% of these are being used by actual residents, while the remaining 85% are operated as short-term rentals, often referred to as “Air BNP.”
Following orders from the Islamabad High Court, CDA officials, along with Islamabad Police, visited the site and issued a seven-day notice to occupants to vacate the apartments.
Although earlier warnings had clearly placed responsibility on buyers, the government has now decided to compensate affected individuals by paying them the original purchase price.
The case highlights serious concerns about regulatory enforcement, investor risk, and misuse of commercial land in Pakistan’s capital.
