Grand Hyatt moves IHC over lease cancellation

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  • Construction site was sealed due to non-payment of dues and blatant violation of building code in June

 

BNP Group, responsible for the construction of five star Grand Hyatt hotel and two apartment complexes near red-zone has moved the Islamabad High Court (IHC) over cancellation of lease contract by Capital Development Authority (CDA) earlier this month.

A petition was submitted to IHC through their counsel Barrister Aitzaz Ahsan. CDA Chairman Maroof Afzal is made party in the petition and challenges the cancellation of lease contract and sealing of construction site based on malafide intention on part of the civic authority.

The petition said that in an auction held back in March, 2005 the company leased 13.45 acres of land for Rs 75,000 per square yard on 99 years of lease back in 2005. However, the petitioner claimed, just one month back CDA auctioned the land to Serena Hotel in more pristine location for Rs 15,000 per square yard. The petitioner claimed that despite completing all legal conditions and paying heed to the clauses of agreement, the CDA has sealed the premises of construction site and incurred irreparable loss to the party.

At present, the two apartment complexes have been erected by the BNP Group on site, the work on hotel building is still in its infancy. Last week, the counsel for CDA told IHC that the land lease of BNP Group has been cancelled by CDA’s board. The CDA sealed the apartment buildings in June, citing gross violation of approved building plan and construction of additional apartments without approval from the authority. For past two months, a legal battle of obtaining stay-orders and cancellation of petitions is afoot between BNP Group and CDA.

“The group concerned has been doing things as they pleased. For ten years, they have been given an empty playing field by successive chairmen of CDA. Now the building control section and enforcement have been given a task to carry out operations without fear and favour,” said a CDA official who requested to remain anonymous.

Whenever premises are sealed, the owners call on judiciary and try to get hold of a stay order. This has become a routine matter for them, the official added.