Islamabad - The Islamabad High Court Friday reserved its verdict in a petition of BNP Group against cancelation of lease of its plot by Capital Development Authority.

A single bench of IHC comprising Justice Athar Minallah conducted hearing of the petition and reserved his judgment after hearing the arguments of all the parties.

In this matter, a private company BNP Private Ltd, previously an allottee of the 13.45 acre land at Constitution Avenue has challenged its lease cancellation notification issued by the CDA on July 29, 2016. The company was building a five star hotel Grand Hyatt and high rise service apartments at the said plot.

During the hearing, the counsels for CDA Iftikhar Gillani and Kashif Ali Malik Advocates contended before the court that the petitioner wanted to validate all illegalities committed by him through the court.

The counsels for CDA informed the court that the petitioner neither deposited 4.1 billion rupees bank guarantee nor performance guarantee to the CDA and it has also not paid annual ground rent to the CDA.

They added that on account of principal amount the petitioner is yet to pay 3.6 billion rupees despite the fact it has earned around 6 billion rupees from the sale of apartments.

The counsels contended that the petitioner company had no experience of hotel industry and it also did not take part in auction of the plot.

The counsel for BNP adopted before the court that CDA has adopted a discriminatory attitude towards his client. On one hand it has been doing nothing against Centuras, Eden housing society and Bahria enclave and they have singled out BNP.

Earlier, in response to the directives of Islamabad High Court, the civic body of the federal capital had submitted its detailed report regarding the implementation of building bylaws in 23 high rise buildings of the city.

According to the report submitted by Capital Development Authority (CDA), some of the monumental buildings of Islamabad included Marriot Hotel, Serena Hotel, UBL, Islamabad Stock Exchange, OGDCL, Centuras, Silver Oaks and DHS buildings in F-7 markaz were occupied without approval of the competent authority.

As per rule, once the construction of a building is completed, owner of the building is required to apply for a completion certificate and according to the procedure, a team of civic agency inspects the building and approves that the building is safe to reside or inhibit.

But, it was stated in the report, the approval of Marriot Hotel building plan was done in 1975 and owners of the said building in November 2016 applied for completion certificate that is still under process.

However, the status regarding payment of principal amount in some of the above mentioned buildings is ‘paid’ including Centaurus, Marriott Hotel, Serena Hotel, CCC Associate, Silver Oaks, State Life, NIC Headquarter, Civil Aviation Authority, Pakistan International Airlines, Islamabad Stock Exchange, PTET Tower, Saudi Pak Tower and the National Logistic Cell have paid the principal amount and only Safa Gold Mall is under litigation.

It was also mentioned in the report that CDA in year 2015-16 cancelled 9 plots of commercial/ multi use/ hotels due to non-payment of dues.

These plots included Park-1 F-10 Markaz, F& V market I-11/4, Hospital Plot I-8 Markaz, Plot number 6 F-10 Markaz, Hotel plot near convention center, three plots of Margalla Town extensions and one another plot in Blue Area.

CDA in its report about lease cancellation of BNP stated that the construction of main component hotel tower has not yet commenced, approval of plan expired in 2013, revised plans were not submitted as per approved format of authority, serviced apartments were sold out to general public.

Besides, BNP group instead of 120 approved serviced apartments constructed 240 apartments and sold them.

The company also did not submit numerous certificates from architect and engineer regarding sound, stability and completion plan also not submitted.