ISLAMABAD: Interior Minister Mohsin Naqvi said on Wednesday that the government planned to convert One Constitution Avenue into a five-star hotel after securing legal possession of the building.
Planning Minister Ahsan Iqbal said the federal cabinet had approved a Joint Investigation Team (JIT) report alleging irregularities in the project’s development.
The investigation found evidence of manipulated bidding and relaxed rules that allegedly benefited the developer, Iqbal said.
Authorities originally approved the project as a five-star hotel. However, the developer later constructed residential apartments and commercial areas.
The Capital Development Authority (CDA) cancelled the developer’s lease over payment defaults. The Islamabad High Court upheld that decision in April, before residents faced evictions in May.
Iqbal alleged that former federal minister Abdul Hafeez Sheikh and several former CDA officials were involved in the irregularities. He named former CDA chairman Kamran Lashari among those implicated.
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Iqbal said the government had directed the National Accountability Bureau (NAB) to investigate the matter. Meanwhile, officials announced plans to compensate affected apartment buyers.
The government intends to refund their principal investments, with adjustments linked to the Karachi Interbank Offered Rate (KIBOR), Iqbal said.
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The investigation team also recommended a fresh, transparent auction and a new name for the property. Naqvi said officials would seek an agreement with a major hotel chain. He hoped to complete the conversion within months.
Separately, the JIT proposed changes to CDA procedures, including digitised records and staff rotations every two years. Naqvi confirmed that a CDA official would manage the building after the government dissolved its residents’ committee.
