Islamabad, November 4,2026: The government will convert the controversial One Constitution Avenue project in Islamabad into a five-star hotel within the next few months following federal cabinet approval of a Joint Investigation Team (JIT) report into alleged irregularities in the project.
Interior Minister Mohsin Naqvi announced the decision while addressing a press conference in Islamabad on Wednesday, saying the government would approach a major international hotel chain to operate the building, which was originally approved for a five-star hotel.
“We will make every effort to convert this building into a five-star hotel within the next few months, which was its original purpose,” Naqvi said.
He pointed out that Islamabad faced a serious shortage of hotel accommodation and expressed hope that an agreement with a major international hotel chain would be finalised soon.
Naqvi said the federal cabinet had approved the JIT findings, paving the way for the government to take legal possession of the property.
He explained that the Capital Development Authority (CDA) already held possession of the building in its official records, but the cabinet’s decision had now provided the necessary legal basis for taking further action.
The minister said the CDA’s member administration would immediately assume responsibility for managing the building’s affairs, with the government’s priority being to make the hotel operational as soon as possible.
He also assured that individuals found entitled to compensation under the JIT recommendations would receive their payments.
Naqvi thanked Prime Minister Shehbaz Sharif for supporting the government’s position despite criticism following its earlier decision to take possession of the property.
He maintained that the government was determined to enforce the law equally, irrespective of an individual’s financial or social standing.
In a separate press conference alongside Information Minister Attaullah Tarar and Minister of State Talal Chaudhry, Planning Minister Ahsan Iqbal said the federal cabinet had approved the JIT report investigating alleged irregularities in the project.
According to Iqbal, the inquiry found that the project had been executed through alleged manipulation of the bidding process, unauthorised relaxation of rules and questionable documentation.
The JIT found that the first auction was cancelled without approval from the CDA Board, while a subsequent auction was conducted under revised terms.
The report also identified the relaxation of restrictions concerning building height, covered area and parking requirements without the board’s approval.
Iqbal said the project had originally been approved as a five-star hotel, but apartments were subsequently sold in violation of its approved purpose.
According to the report, 254 apartments were sold through 99-year sub-leases despite the project’s approval as a hotel with serviced apartments.
The inquiry further found that the lease was awarded to a private company, although the successful bidder was a four-member consortium and the company was not among its members.
It also identified irregularities involving the removal of a bank guarantee requirement shortly before the lease agreement was signed.
The report raised questions about the authenticity of project documentation, including allegedly forged signatures and irregular registration of the lease.
Iqbal said the JIT had identified Abdul Hafeez Sheikh as the alleged mastermind behind the irregularities, along with several former CDA officials and other individuals.
The report also named Kamran Lashari, Dr Faisal Awan, Azhar Ali Chaudhry, Brigadier Nusrat Ullah and the late Rai Nawaz Kharal in connection with the alleged collusion.
The planning minister said Sheikh’s company had been blacklisted from future public-sector projects.
He maintained that the alleged irregularities had caused losses to the national exchequer and resulted in financial losses for individuals who invested in the project.
The JIT recommended a fresh and transparent auction of the land and buildings and restoration of the project’s original purpose.
It also proposed renaming the project after the Ministry of Foreign Affairs objected to the use of the One Constitution Avenue address, which it maintained belonged to its own premises.
Iqbal said the government had directed the National Accountability Bureau (NAB) to investigate the roles of those involved, including individuals who allegedly facilitated the irregularities.
The report also recommended digitisation of CDA records and institutional reforms to prevent similar cases in future development projects.
Information Minister Attaullah Tarar said the government would ensure protection of individuals who had invested in the project.
He said the JIT had identified serious shortcomings and that NAB would conduct its investigation on merit.
Tarar also confirmed that Abdul Hafeez Sheikh’s name had been placed on the Exit Control List (ECL).
Minister of State Talal Chaudhry said the project had remained controversial for nearly two decades and that action had been taken against it twice during PML-N governments.
He said all concerned individuals had been given opportunities to substantiate their claims, but seven to eight people had failed to appear despite repeated summons.
According to Chaudhry, former prime minister and PTI founder Imran Khan was among those who did not appear.
He added that NAB would be required to file a reference against those found responsible within three months.
Chaudhry assured affected buyers that their principal investments would be refunded along with interest calculated on the basis of the Karachi Interbank Offered Rate (KIBOR).
The JIT report recommends that the CDA compensate genuine buyers through refunds of their principal investments, together with KIBOR-based interest or an inflation adjustment. It noted that the authority had collected fees before subsequently disclaiming responsibility.
The JIT report also recommended the immediate installation of appropriate fire-safety equipment in the building.
It further called for a comprehensive overhaul of CDA procedures, improved documentation and stronger institutional oversight to prevent irregularities in future development projects.
The government has said that converting the property into a five-star hotel, addressing the claims of genuine investors and implementing institutional reforms would be among the priorities following the cabinet’s approval of the JIT findings.
