ISLAMABAD: The Federal Board of Revenue (FBR) is all set to commence a comprehensive scrutiny of the financial profiles of all 248 owners of the luxury residential units at the One Constitution Avenue project, following the recent high-profile legal and administrative developments at the site.
The move marks a significant escalation in the government’s ongoing examination of the multi-billion rupee project, which has been the subject of intense litigation and recent administrative interventions.
According to official sources familiar with the matter, tax authorities are currently cross-referencing the ownership data of the twin towers with the national tax registry to ensure compliance with financial disclosure requirements.
Preliminary findings from the FBR’s data-gathering exercise have reportedly flagged discrepancies regarding a portion of the project’s investors. Sources indicate that approximately 46 of the 248 listed owners do not appear in the FBR’s existing records, raising questions about their financial documentation and tax compliance. Furthermore, the scrutiny has revealed that at least 31 owners failed to declare their One Constitution Avenue assets in their annual wealth statements.
The tax body is expected to issue formal notices to these individuals in the coming days, seeking explanations regarding the source of funds and the nature of their asset declaration filings.
The FBR’s sudden focus on the project comes on the heels of a detailed judgment issued by the Islamabad High Court (IHC) on Monday, which upheld the cancellation of the building’s lease. The court ruled that buyers of the luxury apartments do not hold independent ownership rights in the development, directing them instead to pursue legal remedies against the developer, M/s BNP (Pvt) Limited, for the recovery of their investments.
Following the IHC’s order, which triggered uncertainty among residents and investors, Prime Minister Shehbaz Sharif constituted a high-level committee to review the legal and administrative dimensions of the case.
While the administration has been directed to halt physical eviction actions pending the committee’s findings, the FBR’s parallel investigation suggests that the state’s financial oversight of the property is intensifying.
Legal experts note that the FBR’s intervention is distinct from the property dispute itself, focusing instead on the tax obligations of the individuals who purchased units within the controversial development. The development adds another layer of complexity to the status of the building, which has long been mired in litigation dating back to 2005.
However, despite the aggressive stance from the tax authorities, observers caution that the FBR’s move should not be viewed as an inevitable hammer blow to the apartment owners. While the scrutiny signals a tightening of the regulatory net, the Prime Minister retains a de facto veto power over the proceedings. The administration’s recent decision to halt physical evictions via a high-level committee suggests that the Prime Minister’s Office remains the ultimate arbiter, and the FBR’s technical procedures operate within a broader political framework where the final resolution remains subject to executive intervention.
The committee appointed by the Prime Minister is expected to submit its report by May 8, with stakeholders and affected parties anticipating further clarity on the government’s strategy for addressing both the legal standing of the property and the financial liabilities of its owners.
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