- Committee to review cases, submit report.
- PM approval awaited for compensation plan.
- Authorities have been told to halt action.
ISLAMABAD: The federal government has decided in principle to compensate apartment owners of One Constitution Avenue by paying them their original purchase prices, with a formal announcement expected after approval from Prime Minister Shehbaz Sharif.
A high-level committee, constituted by the prime minister, has begun work to examine the legal and administrative aspects of the high-profile controversy, according to an official 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 committee has been tasked with reviewing all related cases, listening to affected apartment owners and proposing a balanced course of action to address grievances while ensuring compliance with the court orders. It is scheduled to submit its report to the prime minister by May 8.
Until a final decision is taken, authorities including the Capital Development Authority (CDA), police and district administration have been directed not to take any action against residents.
The issue stems from a long-standing dispute over the project. In 2005, the CDA allotted 13.5 acres of land to a private developer for construction of a five-star hotel. The company secured the lease for Rs4.8 billion and was granted possession after making an initial 15 per cent payment. However, it subsequently defaulted on payments, leading to prolonged rescheduling and litigation.
In 2019, the Supreme Court of Pakistan ordered the developer to pay Rs17.5 billion to restore the lease. The company has so far paid only Rs2.9 billion and remains in default of approximately Rs14.5 billion, resulting in cancellation of the lease in 2023.
Authorities also noted that in violation of the original agreement, the developer constructed 263 residential apartments on the site. Despite public notices warning buyers of the project’s disputed status, transactions continued.
Currently, only 69 of the 263 apartments are occupied, while the majority remain in the hands of investors. Of the occupied units, officials say only a small proportion are used for permanent residence, with many being rented out on a short-term basis.
Following directions from the Islamabad High Court, the CDA officials, accompanied by police, recently issued seven-day eviction notices to occupants in line with the court orders.
Despite earlier warnings, the government has now moved towards compensating affected buyers, signalling a conciliatory approach aimed at resolving the prolonged dispute.
Originally published in The News
