The long-running legal battle over Islamabad’s Grand Hyatt (One Constitution Avenue) project has finally reached its conclusion.
In April 2026, the Islamabad High Court disposed of all remaining petitions, bringing an end to a case marked by financial defaults, construction violations and multiple court interventions.
Project background
In 2005, the Capital Development Authority (CDA) allotted 13.5 acres of land for a five-star hotel project. The lease was awarded to BNP Company for Rs 4.8 billion.
The agreement required an initial 15% payment, but the company reportedly failed to clear dues on time, leading to repeated rescheduling of payments over the years.
In 2019, the Supreme Court of Pakistan ordered BNP to pay Rs 17.5 billion to restore the lease. This decision was aimed at resolving the long-standing dispute and reviving the project.
However, the company deposited only Rs 2.9 billion, while a default of around Rs 14.5 billion remained outstanding. Due to continued non-payment, the lease was ultimately terminated in March 2023.
According to official records, the project faced serious violations during construction. Instead of remaining a hotel-based development, BNP reportedly constructed around 263 flats, contrary to the approved plan.
The CDA had already issued notices and even placed warnings outside the apartments, stating that buyers would be responsible for their own risk in case of purchase or sale of these units.
Despite restrictions, reports suggest that apartments continued to be sold in the market.
Out of the 263 flats, only 69 are reportedly occupied. However, even among these, only around 15% are actually used for residential living.
The remaining 85% are said to be used for short-term rentals, commonly referred to as “Air BNP” arrangements, according to available records.
Separately, some reports also mention a total of 253 units in the project, highlighting inconsistencies in documented figures over time.
Legal notices and eviction orders
Following court directions, the Islamabad High Court ordered action against occupants. The CDA, along with Islamabad Police, visited the site and issued a seven-day notice to vacate the flats in line with the court order.
Officials maintained that occupants had been given due warning regarding the disputed legal status of the property.
Original purpose
Official approvals in 2005 clearly stated that the project was to function as a five-star hotel, and service apartments were strictly meant for hotel operations only.
However, developers allegedly marketed and sold around 240 units as residential apartments, violating the original terms. Court records indicate these actions significantly altered the nature of the project.
CDA Actions
The CDA issued multiple notices over violations and restricted sales activities until 2012. Allegations also surfaced that the project had effectively been converted into a residential scheme without approval.
The lease was first cancelled in 2016, a decision upheld by the Islamabad High Court in 2017 and 2018.
In 2019, the Supreme Court allowed conditional revival of the project, requiring full payment of Rs 17.5 billion.
Final cancellation
Due to failure in meeting payment conditions, with only Rs 2.9 billion deposited and over Rs 14 billion still unpaid, the CDA cancelled the lease again in March 2023.
The authority also issued a public notice clarifying that any purchase or sale in the project would be entirely at the buyer’s risk.
Finally, in April 2026, the Islamabad High Court disposed of all remaining applications, effectively closing the long-standing legal chapter.
According to legal and property experts, the core issues in the case included repeated contract violations, unauthorized alterations in project design, illegal sale of units and failure to meet financial obligations.
These factors collectively kept the Grand Hyatt Islamabad project entangled in litigation for nearly two decades.
.jpg)
