The miserable story of One Constitution Avenue (OCA) Towers
Let me begin this story – riddled as it is by rumours – by clarifying one that sprang to the front.
Contrary to the perception, over 90 percent of the buyers of flats and apartments in One Constitution Avenue (OCA) Towers (launched around six years ago in the Federal capital) are hard working professionals, widowers, retirees and tax paying Pakistani citizens or overseas Pakistanis.
These individuals had purchased these apartments and flats assuming that such a mega project, being built at the heart of the capital, would have the right government approvals. Moreover, during the launch phase and thereafter, the project was extensively advertised in all major newspapers while its marketing was carried out by one of the most reputed real-estate services firms in the world.
When around 220 purchasers had completed almost 100 per cent of their instalment payments (approx. PKR 5.4 billion) and one of the towers was ready for handover, the project was declared illegal. It was in July 2016 that purchasers were handed over keys to their flats and apartments and some of them had moved their belongings into their new residences. Meanwhile, there was a rumour spreading that Capital Development Authority (CDA) had “cordoned off the premises” and matter became serious when the news of lease cancellation of OCA Towers surfaced in national media.
Purchasers visibly panicked and were obviously shocked. They simply did not know who to blame. Some of them felt bitter towards the builder while others blamed the CDA. All kinds of hypothesis started to emerge. One disturbing such hypothesis was that OCA Towers were being built with purchasers’ money and now when the market valuation of the property had almost doubled, the powers that be wanted to make “their cut.”
The Islamabad High Court has published its judgment on One Constitution Avenue case. There were irregularities in auctioning process of land lease vis-à-vis zoning bylaws in Islamabad were violated in the construction of One Constitution Avenue Towers. The court, however, did proclaim that purchasers had been “robbed” of their due to regulatory failure of CDA and they needed to be fully compensated.
The purchasers collectively pointed fingers at the builder for misleading them and not being transparent. One of the allegations against the builder is that he had approval for “serviced apartments” and a “hotel”, while he constructed and sold apartments and delayed construction of hotel.
From financial perspective, it makes sense as the builder can raise funding upfront to construct building. Then from the cash generated from apartment sales, the builder can build hotel later on. On the contrary, if a hotel and/or serviced apartments are built first, funding the project becomes very expensive and risky for the builder. Of course, none of this can happen as long as CDA and the relevant ministries are working to serve the interests of tax payers.
The 200 odd purchasers who can be categorised as hardworking professional, retirees, widowers and overseas Pakistanis are losing Rs.1.5 million daily in cost of invested capital. They are also undergoing persistent anxiety as their lives have been put on hold. They are spending more money in courts to get their due right. While it may take a very long time to follow the money trail and establish who did what wrong where and how, purchasers of One Constitution Avenue Towers continue to suffer financially and emotionally.
They are asking themselves that was it wrong for them to invest in this project? Who is going to compensate them for their financial losses if their rightful properties are taken away from them? Will Overseas Pakistanis ever invest their money in any future projects in Pakistan? These and many such questions remain unanswered almost ten months after CDA cancelled the lease of One Constitution Avenue Towers’ project.