JIT urges govt to blacklist One Constitution Avenue developer, re-auction property

A joint investigation team has recommended that the Pakistan government blacklist the developer of Islamabad's One Constitution Avenue project from future public-sector contracts and re-auction the property. The team cited alleged irregularities in the project's auction, lease and development, according to its report submitted to the government.

What did the JIT recommend on One Constitution Avenue?

The JIT recommended blacklisting Abdul Hafeez Sheikh and M/s BNP (Pvt.) Ltd. from future public-sector projects, a legal review with no residential use permitted, and a transparent re-auction of the land and buildings. It also proposed refunds for genuine buyers, a new project name and sweeping reforms in the Capital Development Authority (CDA).

The 13.5-acre site was originally approved for a hotel but was later developed with serviced apartments. The report alleges that 254 apartments were subsequently sold as residential units through 99-year sub-leases, despite the property's original approval.

Who investigated the One Constitution Avenue project?

Prime Minister Shehbaz Sharif constituted the Joint Investigation Team (JIT), led by the National Accountability Bureau (NAB), to investigate the matter. It included representatives from the Federal Investigation Agency (FIA), Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP), Intelligence Bureau (IB) and Inter-Services Intelligence (ISI).

The investigation followed a high-level committee formed by the prime minister on May 1, 2026, to review the case.

What irregularities did the JIT find in the One Constitution Avenue auction and lease?

The JIT report alleges that the first auction was canceled without approval from the CDA Board and that a second auction was conducted under revised terms. It states that restrictions on building height, covered area and parking were relaxed after the bidding process without board approval.

The team also questioned the award of the lease to M/s BNP (Pvt.) Ltd., noting that the successful bidder was a four-member consortium. It said the CDA had failed to verify the relationship between the consortium members and the company that eventually received the lease. According to the report, the bank guarantee was withdrawn just three days before the lease was signed, allegedly benefiting the developer.

The JIT also raised concerns about documentation related to the joint venture agreement, which it said appeared in CDA records in 2012, several years after the deal. It alleged that the signatures of two consortium members were forged and that one witness was abroad on the date the agreement was signed. The report also questioned why the lease was registered through the Rent Controller rather than the Sub-Registrar.

Who is named in the One Constitution Avenue report?

The JIT described Abdul Hafeez Sheikh as the alleged mastermind. It named Kamran Lashari, Dr. Faisal Awan, Azhar Ali Chaudhry, Brigadier (retd) Nusrat Ullah and the late Rai Nawaz Kharal as allegedly acting in collusion with CDA officials.

The report said the alleged irregularities caused losses to the national exchequer while generating wrongful gains for the individuals concerned and their associates.

What other recommendations did the JIT make to the prime minister?

Other recommendations include obtaining security, Civil Aviation Authority (CAA) and Environmental Protection Agency (EPA) clearances for future projects of a similar nature. The JIT also called for immediately installing appropriate firefighting equipment. The report recommended renaming the project after the Foreign Ministry reportedly objected to the use of "One Constitution Avenue" as its office address.

To protect genuine buyers, the JIT proposed that the CDA refund the principal amount they paid, along with interest calculated on the Karachi Interbank Offered Rate (KIBOR) or an inflation adjustment. The report argued that the authority had collected fees before disclaiming responsibility for the project.

What reforms did the JIT propose for the CDA and NAB?

The investigation team recommended comprehensive reforms in the CDA, including an overhaul of the CDA Ordinance, the establishment of an independent Master Plan Commission and the digitization of records and approval processes. It also proposed rotating officers serving in the Estate, Planning, Enforcement and Building Control wings every two years. Independent third parties should conduct pre-auction audits of auctions and contracts, the report said.

For NAB, the JIT recommended expediting its investigation and filing a reference in court within three months. The recommendations aim to address the alleged irregularities, improve transparency in public land transactions and establish accountability for decisions involving the development and leasing of government property.