The federal government has decided in principle to compensate apartment owners at Islamabad’s One Constitution Avenue by paying them the prices they originally paid, as it seeks to settle a long-running property dispute linked to a defaulting developer.
A formal announcement is expected after approval from Prime Minister Shehbaz Sharif, according to a media report.
A high-level committee constituted by the prime minister has begun examining the legal and administrative aspects of the case, according to a notification issued by the Cabinet Division. The committee is headed by Law Minister Azam Nazeer Tarar and includes Minister of State for Interior Talal Chaudhry, along with the secretaries of the Cabinet Division and Commerce Division.
The panel has been tasked with reviewing all related cases, hearing affected apartment owners and recommending a course of action that addresses grievances while remaining in line with court orders. It is due to submit its report to the prime minister by May 8.
Pending a final decision, authorities including the Capital Development Authority, police and district administration have been directed not to take action against residents.
The dispute dates back to 2005, when the Capital Development Authority allotted 13.5 acres of land to a private developer for the construction of a five-star hotel. The developer secured the lease for Rs. 4.8 billion and took possession after making an initial 15% payment, but later defaulted, triggering years of rescheduling and litigation.
In 2019, the Supreme Court ordered the developer to pay Rs. 17.5 billion to restore the lease. The company has so far paid Rs. 2.9 billion and remains in default on around Rs. 14.5 billion, leading to cancellation of the lease in 2023.
Authorities say the developer also violated the original agreement by constructing 263 residential apartments on the site. Despite public notices warning buyers that the project was under dispute, transactions continued.
Officials say only 69 of the 263 apartments are currently occupied, while most remain with investors. Of the occupied units, only a small number are being used for permanent residence, with many rented out on a short-term basis.
Following directions from the Islamabad High Court, CDA officials accompanied by police recently issued seven-day eviction notices to occupants.
