ISLAMABAD – The decades-long legal saga surrounding the Grand Hyatt (One Constitution Avenue) project has concluded, with authorities initiating eviction proceedings following a final Islamabad High Court (IHC) ruling in April 2026 .
Origins of the Dispute
In 2005, the Capital Development Authority (CDA) allotted 13.5 acres of prime land near the Convention Centre to BNP for Rs4.8 billion to build a five-star hotel. The company received possession after paying just 15 percent but failed to clear the remaining dues, repeatedly seeking rescheduling .
Legal & Financial Defaults
The Supreme Court ordered BNP to pay Rs17.5 billion in 2019 to restore the lease. However, the company deposited only Rs2.9 billion, leaving Rs14.5 billion outstanding. Consequently, CDA cancelled the lease in 2023 . Officials noted the company admitted it was “impossible” to continue payments .
Alleged Violations and Evictions
BNP violated the agreement by constructing 263 residential flats instead of a hotel. CDA issued public warnings that buyers purchased at their own risk, yet transactions continued . Out of 263 apartments, only 69 are occupied—85 percent are reportedly used for short-term rentals rather than permanent living .
On May 2, CDA and Islamabad Police issued seven-day eviction notices to occupants . The IHC upheld the lease cancellation, noting third-party buyers “sink or sail” with the lessee .
Government Response
Despite CDA’s warnings, the government is now considering compensating affected parties based on the original purchase price, adding complexity to the final closure of the case .
