PAC approves agreement between CDA & Grand Hyatt developer  


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19/11/2020 8:24 am  

ISLAMABAD: On Wednesday, the Public Accounts Committee (PAC) took less than a minute to approve a billion rupee agreement between the Capital Development Authority (CDA) and M/S BNP (Private) Limited, the developer of the Grand Hyatt Hotel.

The matter was not part of the PAC's everyday agenda, but chairman Rana Tanvir Hussain hastily allowed the developer to settle for the first installment of a total of Rs 17.5 billion in one year. Capital Development Authority (CDA).

In August 2016, civic authorities cancelled the lease of a 13.5-acre plot for the Grand Hyatt hotel after developers built and sold residential apartments. The High Court of Islamabad (IHC) also supported the CDA's decision.

BNP Provide annual time to deposit installment of Rs 17 billion

However, the Supreme Court (SC) resumed leasing plot in January last year. On the spot, the apex court bench, led by former Supreme Court Chief Saqib Nisar, instructs the M/S BNP to pay the installment immediately and “if the BNP defaults, the CDA will give 30 days' notice before terminating the lease”.

 

SC restored the lease, instructing the company to pay Rs 17.5 billion rupees to the civic authorities over eight years.

Those who have bought apartments built for luxury hotels include Prime Minister Imran Khan, former Chief Justice of Pakistan Nasirul Mulk, Pakistani Cricket Board Chairman Ehsan Mani, Khawaja Mohammad Asif, and Federal Ombudsman to Prevent Bullying of Women at Work. Kashmala Tariq.

Although PAC was not included on the agenda of the meeting, it adopted a report on the resurrection of a lease for a multi-story under-construction building for the Grand Hyatt Hotel on One Constitution Avenue.

PML-N Senator Mushahid Hussain Syed noted that the date of the first installment scheduled a year later is December 31, 2021. On the other hand, PAC member Noor Alam said the developer had nothing to pay. You will have enough time to pay the outstanding dues.

Rana Tanvir Hussain supported Alam's view and adopted a report on the consensus.

On October 7th, the PAC chairman pointed out since the National Accountability Bureau (NAB) did not prohibit CDA from acting in accordance with the law and clarified the mooring of the proceedings before NAB did not instruct civic groups to stop. In that process, the CDA was free to proceed under the direction of the Supreme Court.

Both the CDA and the developer were decided to implement the Supreme Court's decision and issue a re-adjustment letter to affect the decision if the apex court later reviewed it.

PAC ordered the guidelines under the Pakistan Supreme Court's August ruling to be implemented without “ifs” and “buts” and added that reading the CDA letter and meetings between builders and civic groups took place on 3rd November. And it was decided to carry out the decision of the apex court by letter and spirit according to the final result of the review petition submitted by both sides.

In addition, the architects said they had agreed to provide a payment schedule for outstanding amounts on January 9, 2019, as the apex court’s decision; with the time limit determined by the Supreme Court is not extended.

According to the payment schedule, the developer pays 6 installments 2,916,666,667 on December 31 every year from next year to 2026 and deposits Rs 17.5 billion Rs. To the total amount, Rs 1,227,352,500 has already been paid.

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