Islamabad: Chairman of the Capital Development Authority (CDA), Chaudhry Mohammad Ali Randhawa, made an unusual decision to auction two hotel plots in an effort to raise funds for mega projects amid financial challenges.
To promote the auction, a massive advertising campaign was launched, with approximately one to 1.25 crore rupees spent on advertisements across newspapers and television channels. However, despite the extensive promotion, only three parties showed interest by acquiring tokens for participation, including Marriott Hotels and Nishat Hotel.
The plots in question were located in prime areas. Plot Number 8, which spans 18,000 square feet (approximately 36 kanals), had a reserved price of 827,000 rupees per square foot. However, no bids were placed for this plot. Similarly, Plot Number 6, with a reserved price of 746,000 rupees per square foot, failed to attract any participants.
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In response to the auction’s failure, Marriott Hotel was sealed, but this action was later reversed following a High Court order. Notably, Chairman Chaudhry Mohammad Ali Randhawa had previously claimed that the CDA could create its budget without the need for auctions, raising questions about the efficacy of his strategy.
The auction’s failure raises concerns about the CDA’s approach to generating revenue, and its potential impact on the development of Islamabad’s major projects.
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