PTBP Web Desk
The federal government has decided in principle to compensate buyers of apartments at One Constitution Avenue, a high-profile property project in Islamabad, as part of efforts to resolve a prolonged legal dispute involving a defaulting developer.
According to officials, the proposed plan involves refunding apartment owners their original purchase prices. The decision is expected to be formally announced after approval from Prime Minister Shehbaz Sharif.
Committee Formed to Review Case
To address the issue comprehensively, the government has constituted a high-level committee. The panel is led by Law Minister Azam Nazeer Tarar and includes Minister of State for Interior Talal Chaudhry along with senior officials from key government departments.
The committee has been tasked with reviewing legal, administrative, and financial aspects of the case. It will also hear affected residents and recommend a solution that aligns with court directives. The panel is expected to submit its report by May 8.
In the meantime, authorities such as the Capital Development Authority (CDA), local police, and district administration have been instructed not to take coercive action against residents.
Background of the Property Dispute
The dispute dates back to 2005, when the CDA allotted land for a luxury hotel project to a private developer. The developer secured the lease but later defaulted on payments, triggering years of legal complications.
In 2019, the Supreme Court of Pakistan ordered the developer to clear outstanding dues amounting to Rs. 17.5 billion to restore the lease. However, only partial payments were made, leaving a significant amount unpaid. As a result, the lease was eventually cancelled in 2023.
Complicating matters further, the developer constructed residential apartments on the site in violation of the original agreement. Despite warnings from authorities, the units were sold to buyers, many of whom were unaware of the ongoing legal dispute.
Current Situation of Apartment Owners
Out of 263 apartments built at the site, only a small number are currently occupied. Many units remain with investors, while others are rented out. Recently, following directives from the Islamabad High Court, authorities issued eviction notices to residents, intensifying concerns among affected owners.
However, the government’s compensation plan offers a potential resolution. By refunding original purchase prices, authorities aim to address the grievances of buyers while ensuring compliance with legal rulings.
