ISLAMABAD – The federal government has decided in principle to compensate the owners of apartments at One Constitution Avenue by refunding their original purchase prices, with a formal approval expected from Prime Minister Shehbaz Sharif.
The sources said that a high-level committee has been formed to review the long-standing dispute and propose a way forward. The body has been constituted through a notification issued by the Cabinet Division Pakistan.
The committee is headed by Law Minister Azam Nazeer Tarar and includes Minister of State for Interior Talal Chaudhry along with senior officials from the Cabinet and Commerce Divisions. It has been tasked with examining legal and administrative aspects of the case, hearing affected apartment owners, and recommending a balanced resolution in light of court orders. The committee is required to submit its report by May 8.
Until a final decision is taken, the Capital Development Authority (CDA), police, and district administration have been directed to refrain from taking any coercive action against residents.
The issue relates to a long-running dispute over land allotted in 2005 by the Capital Development Authority to a private developer for a five-star hotel project on 13.5 acres. The lease was awarded for Rs4.8 billion, with possession granted after an initial 15 percent payment. However, the developer later defaulted on payments, leading to prolonged litigation and repeated restructuring attempts.
In 2019, the Supreme Court of Pakistan ordered the developer to pay Rs17.5 billion to restore the lease. The company, however, has only deposited Rs2.9 billion so far, leaving outstanding dues of around Rs14.5 billion. As a result, the lease was cancelled in 2023.
Authorities also stated that, in violation of the original agreement, the developer constructed 263 residential apartments on the site. Despite warnings about the disputed status of the project, apartment sales continued.
At present, only 69 of the 263 units are occupied, while the majority remain with investors. Officials said a small number of these are being used as permanent residences, while several are rented out on a short-term basis.
Following directives from the Islamabad High Court, CDA teams along with police recently issued seven-day eviction notices to occupants in line with judicial orders.
The government’s move to compensate affected buyers is being viewed as an effort to resolve the prolonged dispute through a negotiated settlement and avoid further hardship for apartment owners.
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