SC moved against cancellation of lease by CDA

Islamabad : A writ petition has been filed in the Supreme Court of Pakistan against sealing of twin towers raised at One Constitution Avenue and cancellation of lease of the same plot measuring 13.5 acres by the Capital Development Authority (CDA) and upholding of decision of the CDA by the Islamabad High Court (IHC).

In the petition, the M/s BNP through their attorney have pleaded that order for unilateral cancellation of Lease Deed by CDA is arbitrary, without jurisdiction and illegal saying it is settled law that authorities must exercise their authority in a fair and reasonable manner.

The petitioner states the Federal Government approved the request to amend the Master Plan to provide for a “Five Star Hotel, Shopping Mall, etc.” next to the Convention Centre and Master Plan stood amended on 02.07.1997.

It says the BNP Group offered to own, construct, operate and maintain a mixed-use Project with highest bid of Rs75,000 per square yards, including a five star hotel, serviced apartments, other related facilities. CDA agreed to grant a 99-year lease on receipt of the initial 15% payment required by the tender amounting to Rs732,352,500. Rs25,000,000 had already been paid by BNP Group as earnest money before the bidding, leaving a balance of Rs4,149,997,500 due and payable

Thus it was alleged that the re-scheduling of payments by CDA for the project was unauthorised, as the Ministry of Finance had not approved the amendment. Rule 19(iv) did not require approval from the Ministry of Finance.” It only required approval from CDA which entered into the contract so varied. Approval from the Ministry of Finance is required only where a payment is made to a contractor,” the petitioner said.

The amendments in the Lease Deed were made with the approval of the CDA Board which could not be disputed.

The petitioner says the amendments were made after negotiations. In both cases the amendments were necessitated by 2005 earthquake and significant reduction in height of the building by the CDA.

The petitioner says the CDA Board following the recommendations of a four-member Committee directed that the work at the site of the project be immediately stopped and the site be sealed in July, 2016.

The petitioner has raised questions whether Islamabad High Court erred by disregarding the fact that the delays in the construction of the Project were on account of, firstly, natural causes beyond the control of the petitioners, secondly, on account of contractual violations committed by CDA?

The petitioner also questions whether the Islamabad High Court erred in law by holding that the CDA was entitled to terminate the Lease Deed unilaterally.

The petitioner has prayed the Supreme Court to set aside judgment of division bench of the Islamabad High Court dated 03.09.2018 and earlier decision of single bench dated 03.03.2016 and decision of CDA terminating the Lease Deed, and grant any other relief that the Honourable Court may deem fit and proper.