The Capital Development Authority allotted 13.5 acres of land in 2005 for a five-star hotel project in Islamabad, awarding the lease to BNP for Rs4.8 billion. The authority handed over possession after receiving 15 percent payment, allowing construction to begin, however, the company failed to clear remaining dues and instead sought repeated rescheduling of payments over time.
As disputes intensified, the case reached the Supreme Court of Pakistan, which in 2019 ordered BNP to pay Rs17.5 billion to restore the lease. Despite the ruling, the company has so far paid only Rs2.9 billion, leaving outstanding dues of around Rs14.5 billion, ultimately leading authorities to cancel the lease in 2023 due to continued non-compliance.
Meanwhile, the company deviated from the original agreement by constructing 263 residential apartments instead of completing the approved hotel project. The Capital Development Authority placed warning notices outside the building, clearly stating that buyers would bear responsibility for any legal consequences, yet buying and selling of these flats continued despite the dispute.
Out of the total 263 apartments, only 69 units are currently occupied, while the remaining 194 are largely held by investors engaged in property trading. Among the occupied units, reports indicate that only 15 percent house permanent residents, whereas about 85 percent are being used for short-term rentals under arrangements similar to daily leasing services.
Following directions from the Islamabad High Court, officials from the Capital Development Authority, along with Islamabad Police, visited the site and issued formal notices to occupants. Residents and stakeholders have been given seven days to vacate the premises in compliance with court orders, marking a significant step in enforcement actions.
Although authorities had earlier warned buyers about the risks associated with the disputed property, the government has now decided to show leniency by offering compensation based on the original purchase price. This move aims to address the concerns of affected individuals while ensuring legal enforcement and restoring regulatory control over the project.