islamabad - The Islamabad High Court will resume hearing in a petition today (Monday) filed by the owner company of a multi-storey under- construction building of the Grand Hyatt Hotel against the cancellation of lease of its plot.
A single bench of IHC comprising Justice Athar Minallah will conduct hearing of the petition.
Previously, he had adjourned the proceedings till November 28 after Asma Jehangir, counsel for the applicants who had purchased apartments in the building concluded her arguments in this matter.
Barrister Aitzaz Ahsan, counsel for the owner company of the hotel and two other lawyers, have also completed his arguments.
In this matter, a private company BNP Private Ltd, previously an allottee of the 13.45 acre land at the Constitution Avenue has challenged its lease cancellation notification issued by the CDA on July 29, 2016.
During the hearing, Barrister Aitzaz had contended that the Capital Development Authority (CDA) did not give any notice for violating building codes or bylaws.
He argued that the civic body adopted discriminatory attitude toward his client. Therefore, he requested the court to declare CDA’s lease cancellation notification as null and void.
Petitioner BNP CEO had moved the court through Barrister Aitzaz Ahsan and challenged the CDA’s decision to cancel its lease in the court.
It was July 1, when CDA had sealed the area where a five-star hotel Grand Hyatt and around 240 serviced apartments were under construction.
After the BNP challenged sealing of this area, CDA had alleged before the IHC that gross illegalities were committed in this project by BNP and some previous office-bearers of the civic agency.
In this regard, CDA informed the IHC on August 01 that its governing board on July 29 had cancelled lease of land to the BNP. An IHC bench hearing the petition of BNP then turned down the case with observations that it has become infructuous in the changed circumstances.
The petitioner BNP challenged lease cancellation notification through Barrister Aitzaz Ahsan and adopted that it did not violate any law but it was inefficiency of the CDA officials instead that caused the petitioner huge financial losses.
It was stated in the petition that CDA on September 28, 2004 advertised in national press auction of land for constructing of a five-star Hotel, Service Apartments and other allied facilities.
The earlier bidding process for the plot was scrapped by CDA due to insufficient response from prospective bidders. Only two companies participated, both owned by the same group.
The petitioner added that as per the new advertisement the lease was for a period of ninety nine (99) years.
15 per cent of the bid amount was to be submitted within 45 days of acceptance of bid. The remaining 85 per cent of the bid amount was to be paid over a period of 15 years.
He continued that in an open auction on March 09, 2005, the BNP Group was the highest bidder at Rs75,000/- per square yard.
Less than a month before the land for Serena Hotel was sold on February 12, 2005 at a price of Rs14,500/- per square yard, petitioner told the court. The total lease price of the land was Rs4.882 billion.
The counsel for the petitioner contended that lease deed for the plot was signed between CDA and BNP (Private) Limited on July 28, 2005 while possession of the plot was not handed over to the BNP till October 04, 2006, which is the date of commencement of lease.
He argued that petitioner was not only given possession of the plot quite late but it was also asked to revise building plan due to the earthquake of October 2005 when CDA had revised building codes in Islamabad.
The petitioner then submitted revised building plans that were approved on March 29, 2008. He adopted that the company has been targeted at the whims of influential persons.
Therefore, he prayed to the court that unilateral cancellation of the lease deed by CDA Board is illegal, unlawful and contrary to the fundamental rights of BNP (Private) Limited.
He further requested that its lease may be restored.