The Islamabad High Court (IHC) on Thursday upheld Capital Development Authority’s (CDA) decision to cancel the lease of One Constitution Avenue over non-payment of dues.

IHC Chief Justice Sardar Mohammad Sarfraz Dogar announced the verdict on petitions filed by M/s BNP (Private) Limited and residents of the building.

The court had earlier reserved its decision in February in the case related to the lease cancellation of the Grand Hyatt project located in the Red Zone.

During proceedings, CDA’s counsel Kashif Ali Malik represented the authority.

The case relates to a hotel project awarded to BNP Group around two decades ago. The project was initially planned as a five-star hotel but was later converted into residential apartments and commercial units.

Apartments in the building are reported to be owned by individuals including PTI founder Imran Khan, Chaudhry Aitzaz Ahsan, Shandana Gulzar Aurangzeb, former minister Burjees Tahir, former caretaker prime minister Nasirul Mulk and Kashmala Tariq.

The CDA maintained that BNP failed to meet its financial obligations over 21 years. It stated that ownership rights were tied to full payment of land cost, while out of Rs17.5 billion liability, only Rs2.9 billion was paid.

The authority referred to a Supreme Court order issued on January 9, 2019, and argued that BNP did not comply with its conditions. It also cited a later review order stating the 2019 ruling had lost relevance due to subsequent developments.

On this basis, the CDA argued that a 2018 Islamabad High Court judgement stood restored, under which the land and structure reverted to the authority.

The CDA also referred to a July 25, 2022 letter from BNP, in which the company stated it could not continue the project or pay instalments due to economic conditions and credit ratings. The letter said completing the project and paying the December 2022 instalment had become “impossible”.

The CDA argued that BNP’s admission of default prevented it from contesting the lease cancellation.

During earlier hearings, questions were also raised regarding procedural and representation issues in the case, while the court was informed that the matter had been investigated by the Federal Investigation Agency and later transferred to the National Accountability Bureau (NAB).

The Public Accounts Committee has also reviewed the matter.

On third-party buyers, the CDA relied on a 2018 judgement stating that sub-lessees “sink or sail with the appellant”, arguing that disputes involving apartment buyers could not be adjudicated under Article 199.

The CDA also said the absence of a planned five-star hotel in Islamabad for nearly two decades had affected arrangements during official visits and diplomatic engagements.

Following the court’s decision, residents claimed that law enforcement personnel entered the building late at night to enforce evacuation.

In a message attributed to a resident, it was stated: “At 1 AM last night, I was jolted awake by heavy banging on the door… I was greeted by 50 heavily armored police officers”.

The resident said that occupants were asked to vacate by noon and added: “No court order shown. No documents. No explanation”.

Another resident said that the operation took place during the night and raised concerns over timing, stating that families were given limited time to leave. The resident said: “Rolling in at 1 a.m. and pushing 200-plus families out… with little or no fair notice, is brute force disguised as procedure”.