Minister of State for Capital Administration and Development Division has told the House that due to violations in the agreement, Grand Hyatt Hotel’s license for construction of a 5-Star Hotel near the Convention Centre has been canceled.

Background of the Problem

The issue began back in July when the Capital Development Authority (CDA) issued a cancellation notification to 23 leading buildings in Islamabad.

BNP Private Ltd, a private company, was allotted 13.45 acres of land for the construction of a 5-Star hotel at the Constitution Avenue on a 99 year lease. The building was being constructed for the Grand Hyatt Hotel and 23 story high-rise apartments at the said plot.

The plot was auctioned for a bid of Rs. 4.88 billion back in 2005. The building was initially allowed to be 718 feet high was it was reduced to 300 feet following objections from the Civil Aviation Authority.

The Petition Against CDA

The Grand Hyatt Hotel was to be constructed by 2013. According to the minister, the private firm hpw built apartments at the land and sold them to the public. The construction of the Grand Hyatt Tower hasn’t even begun. The hotel owners claimed that they had not violated any laws.

CDA has canceled the lease and seized the building for violation of rules. Up until now, the firm was offered special favors and relaxation by the CDA officials and the matter wasn’t dealt with even though years have passed.

The Islamabad High Court has asked the CDA whether the rules were only being applying to one firm by picking and prosecuting. CDA replied by saying that the company had already been given undue favors and relaxation. The Capital authority has also requested NAB and FIA to investigate the officials behind the relaxations given up until now.

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The next hearing will take place no Friday and by the looks of it Grand Hyatt Hotel is on a long pause in Islamabad after announcing entry into Pakistan not so long ago.