The federal government has decided in principle to compensate apartment owners of One Constitution Avenue in Islamabad by returning the original prices paid for their units, following a long-standing legal and financial dispute over the high-profile housing project. A formal announcement will be made after approval from Prime Minister Shehbaz Sharif.
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A high-level committee, formed by the prime minister, has been tasked with reviewing the case and recommending a way forward. 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 Division and Commerce Division. It will examine legal, financial and administrative aspects, hear affected owners, and submit its report by May 8.
The federal government has decided in principle to compensate buyers of apartments at Islamabad’s One Constitution Avenue by returning their original purchase prices. A formal announcement will follow after Prime Minister Shehbaz Sharif’s approval.
A high-level committee, led by… pic.twitter.com/zBEgpRStvm
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Until a final decision is made, authorities including the Capital Development Authority (CDA), police and district administration have been instructed to halt any action against residents of the building.
The dispute dates back to 2005 when the CDA leased 13.5 acres of land to a private developer for a five-star hotel project. The developer defaulted on payments after initially paying only 15 per cent of the Rs4.8 billion lease value, leading to prolonged litigation and rescheduling attempts.
In 2019, the Supreme Court ordered the developer to pay Rs17.5 billion to restore the lease, but only Rs2.9 billion was paid, leaving a large outstanding amount. The lease was eventually cancelled in 2023.
Authorities later found that the developer had constructed 263 residential apartments on the site in violation of the original agreement. Despite warnings, many units were sold to buyers.
At present, 69 apartments are occupied while the majority remain with investors, with several units reportedly rented out on a short-term basis. Earlier, eviction notices were issued in compliance with court directions.
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The government’s decision to compensate buyers marks a shift towards resolving the prolonged dispute and addressing the financial losses of affected apartment owners.