A colossal cultural centre in Azerbaijan by the architect Zaha Hadid has been declared the Design of the Year by London's Design Museum, despite concerns about the site's human rights record.

Housing a museum, auditorium and multi-purpose hall within its undulating shell in the capital, Baku, the Heydar Aliyev centre was described by the judges as "the pinnacle moment" in Hadid's portfolio, a piece of architecture that "should make us talk for years to come". It beat off competition from an innovative school chair, a revolutionary eye examination app, and a futuristic piano keyboard.

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Hadid's practice said the contractor on the Baku project was internationally accredited by the Geneva-based inspection and verification body SGS.

Hadid's practice came under fire over its vast commercial development in Beijing for displacing residents from the century-old hutongs that it flattened. The practice insisted the site was already cleared by the time it got involved.

"Even if these sites are already clear, there are likely to be ongoing claims," says Hugh Williamson of Human Rights Watch. "All international companies have a responsibility for the local issues of consultation, compensation and the use of force – it is something they must be aware of."