The Minister of State for Capital Administration and Development Division (CADD), Tariq Fazal Chaudhary, on Tuesday told the Senate that due to breaches in the agreement, Grand Hyatt Hotel’s license for construction of 5 star Hotel has been canceled. The news has spread negative sentiment as many were desperately waiting for a 5-Star Hotel to make its mark in the country’s tourism and hospitality industry.
“The building was sealed and is under the custody of CDA,” Chaudhary said, adding that the lease stood cancelled.
Mr. Chaudhary said that as per the agreement, government allotted 13.5 acres land to build a five-star hotel.However, the owner went against the agreement and constructed an apartment over that land which he later sold to public. He added that in 2005, CDA’s Finance Wing fixed the price of PKR 14,500 per square yard for the land which was constructed of the hotel. Amongst the few top bidders, BNP Group offered the highest bid of PKR 75,000 per square yard.
The lessee, on the order of the Islamabad High Court, had deposited a PKR 200 million installment due on December 31, 2016. Adding to that, the minister said that several other parliamentary committees, such as Public Accounts Committee, were also looking into the matter.
On the other hand, the Minister for Housing and Works, Akram Khan Durrani, defended the Federal Government Housing Foundation (FGHF) by saying that no breaches had been committed in allotting the plots of officers of Islamabad Police and District Administration.
It is worth mentioning that the next hearing will be held on Friday and speculations are making rounds that the construction of Grand Hyatt Hotel is gone on a long pause in Islamabad.. However, it is yet to see whether this matter will be resolved or not. In any case, we’ll keep a track on the story to keep our readers updated.