Federal cabinet approves JIT report on one constitution avenue fraud

The Federal Government has approved the Joint Investigation Team (JIT) report on alleged multi-billion-rupee irregularities in Islamabad’s

ISLAMABAD: The Federal Government has approved the Joint Investigation Team (JIT) report on alleged multi-billion-rupee irregularities in Islamabad’s luxury project, One Constitution Avenue, announcing strict action against the developer and officials involved in the scandal.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, accompanied by Federal Information Minister Attaullah Tarar and Minister of State for Interior Talal Chaudhry, announced the decisions during a joint press conference in Islamabad on Tuesday.

Ahsan Iqbal said the JIT, formed on the directives of Prime Minister Shehbaz Sharif, had completed its investigation, and its findings were presented before the Federal Cabinet, which formally approved the report.

Major Findings of the Investigation

According to the minister, the investigation uncovered serious violations and irregularities in the project.

The 13.5-acre plot was auctioned to BNP Group on March 9, 2005, for Rs4.88 billion. However, the JIT found significant irregularities in the auction process and concluded that the company awarded the lease was not eligible for it.

The report also identified former CDA Chairman Kamran Lashari and other officials for allegedly relaxing regulations to facilitate the developer. Construction activities were reportedly carried out in violation of the approved building plan.

Investigators further found that the project’s name, “One Constitution,” was allegedly obtained through fraudulent means, while its address was linked to the Ministry of Foreign Affairs.

The apartments were also reportedly sold without fulfilling mandatory legal requirements and clearing outstanding dues payable to the Capital Development Authority (CDA).

The minister also referred to findings concerning former Finance Adviser Abdul Hafeez Shaikh and his alleged connection with the project’s mastermind. The associated company has been recommended for blacklisting.

Federal Cabinet Orders Strict Action

Following the approval of the JIT report, the Federal Cabinet decided to blacklist the responsible developer and initiate legal proceedings against those involved.

Cases against implicated CDA officials have been referred to the National Accountability Bureau (NAB) for investigation and action in accordance with the law.

The government also announced that the project would be re-auctioned through a transparent process. Additionally, comprehensive institutional reforms in the CDA will be introduced, including mandatory transfers and rotation of officers every two years to strengthen accountability and prevent misuse of authority.

Investors to Receive Compensation

Ahsan Iqbal assured genuine investors that they would not be penalised for the wrongdoing of the developer and officials.

“The property holders will be compensated. They will be paid their full invested amount along with interest above KIBOR,” he said, announcing relief for affected buyers.

Background of the Case

One Constitution Avenue is a luxury residential and commercial high-rise situated in Islamabad’s Red Zone, near the Prime Minister’s House and Diplomatic Enclave.

The project has faced legal disputes and regulatory controversies for nearly two decades. Following the 2005 auction, the developer allegedly failed to clear its outstanding payments, leading to proceedings before the Islamabad High Court and Supreme Court.

In 2019, the Supreme Court directed the company to pay Rs17.5 billion within eight years. After the developer failed to meet its obligations, the CDA cancelled the lease. The Islamabad High Court subsequently upheld the cancellation but restrained the authority from evicting existing allottees.

To investigate the matter, Prime Minister Shehbaz Sharif initially established a high-level committee headed by Law Minister Azam Nazeer Tarar. A subsequent JIT comprising Grade-21 officers from NAB, FIA, SECP, FBR, ISI and IB was tasked with completing the investigation within 60 days.

The approval of the report has now paved the way for disclosure of findings and implementation of the government’s decisions.