CAPITAL DEVELOPMENT AUTHORITY

LAW WING

BRIEF
M/S PAK SERVICES LTD & MS HASHWANI HOTEL LTD
VS
CDA

1. Plot # 08 measuring 18,055 square yards in Sector F-5/1, Islamabad was put up
for Auction in the year 1994, bid held on 12-10-1994 for the construction of a five
star hotel. However, it was felt that bidders participating in the auction have
gotten in a shape of cartel to influence the bidding, therefore in terms of clause 10
of T & C of the Auction brochure the auction committee deferred the auction to
the next day i.e. 13-10-1994.
2. On 13-10-1994 a group of ten bidders participated in the auction. The highest
bidder was required to pay 25% premium within 48 hours. Upon failure CDA
withdraw offer letter and offered the plot to 2 nd highest bidder i.e. MS Panorama
Condominiums (PVT) Limited who were required to match the bid of the
highest / successful bidder.
3. FIA started investigation in the matter and passed a seizure order concerning the
plot.
4. The bid acceptance letter was issued to MS Panorama Condominiums and FIA
shelved the matter ad seizure order passed earlier was withdrawn.
5. M/S Pakistan Services Ltd filed Writ Petition No. 310/1996 in Lahore High
Court, Rawalpindi Bench seeking for directions to CDA to transfer the plot to the
M/S Pakistan Services Ltd. During the pendency it was pleaded by CDA that the
subject plot was part of Green Belt in Sector F/5,G/5, Islamabad and has been
declared as CORDON SANITAIRE by the Federal Government vide its decision
dated 09-08-1996 so that no construction is permissible in the area. The
Honourable Court disposed of the Petition being infructuous. It was specifically
ordered that if the plot in dispute is put to auction the petition may if so advised
challenge any act of the CDA by knocking the Constitutional Jurisdiction.
However, the said bid did not go through since the area was declared Cordon
Sanitaire.
6. M/S Panorama Condominium also filed WP NO. 223/1999 in the Lahore High
Court Rawalpindi Bench praying to direct the CDA to a lot an alternative plot.
Since the possession of the plot was not hand over to MS Panorama
Condominiums, the Honourable Court ordered the CDA to refund the deposited
amount to MS Panorama Condominium with 16 % interest.
7. IN the year 2007, the subject plot was again put to auction purely as a Hotel Plot
for which bidders were prequalified and only those having experience of
operating of 5 star hotels were allowed. MS Hashwani Hotel Ltd participated in
the Bid and was declared 2nd highest bidder.
8. In March 2013, the subject plot was again put-up for auction. Writ Petitions No.
1257/2013 (MS Pak Services) and W.P No. 1300/2013 (Ms Haswani Hotel Ltd)
was filed in the Islamabad High Court Islamabad which were allowed vide order
dated 21-10-13 and auction process was declared void, illegal and without lawful
and chairman is directed to seek approval from the Federal Government before
putting the subject plot to auction and if such request is allowed by the Federal
Government Chairman CDA shall decide the representation of the Petitioners
pending with them before initiating auction process of the disputed plot.
9. MS Pakistan Services Limited filed ICA 1120/2013 against order dared 21-10-
2013 and the same was dismissed.
10. Civil Petition No. 4865 & 4866 / 2018 was filed in the Honourable Supreme
Court of Pakistan against the above said ICA. The Honourable Court disposed of
the Petitions on the statement that in case of Federal Government grants
permission to auction the plot in question, such auction shall be undertaken
through an open and transparent manner / process as he has been stated in the
impugned order of the Islamabad High Court.

:43:
Reference to Para-215/N

216. It is submitted that plot No. 08 situated in Sector F-5 which was declared “Cordon
Sanitaire” by the Federal Government vide letter dated 19-06-1996 and this fact
was first brought into the knowledge of the Court by the CDA itself. (Judgment
passed in WP No. 1257/2013 refer). Now it is confirmed from all four corners
that the plot would not be re-auctioned till the concurrence of the Federal
Government. It is also to mention that if the Concurrence of the Federal
Government receives, then before going to auction, representation of the
Petitioners (M/S Hashwani Hotel & Pakistan Services) if any, would be decided
first.

217. Law Wing is of the opinion that if any such report is sent to the Federal
Government for auction, the same is need to be pursued and further action would
only be taken in the light of concurrence of the Federal Government.

218. In the meanwhile another Writ Petition No. 3301 / 2023 recently has been filed by
M/S Hashwani Hotel wherein the Petitioner has sought declaration of the Court
that CDA has no authority to Auction the site without getting approval of the
Federal Government. No restraining order has been passed, yet the same is
pending and 17-11-2023 is the next date of hearing.

219. Attention is also invited to Regulation No. 08.8 of ICT Building Control
Regulations 2020 which suggests following types of building for Sector F-5, G-5
Islamabad “Administrative / Cultural / Offices for National & International
Organizations / Public Buildings / Government Hostels & Lodges” where plot
for construction of Hotel is not mentioned in the category of type of Buildings. In
case if the Authority desires to Auction the plot for the construction of hotel then
necessary amendment in the relevant clause will need to be done by inserting
word “Hotel” therein.

220. Submitted please.

Director General (Law)

Chairman, CDA.
 CAPITAL DEVELOPMENT AUTHORITY
LAW WING

BRIEF
M/S PAK SERVICES LTD & MS HASHWANI HOTEL LTD
VS
CDA

 Plot # 08 measuring 18,055 square yards in Sector F-5/1, Islamabad was put up
for Auction in the year 1994, bid held on 12-10-1994 for the construction of 05
star hotel.
 Different parties participated in the Auction and the One MS Panorama
Condominium