After nearly two decades of legal disputes and uncertainty, the federal government is preparing a compensation framework for apartment owners at One Constitution Avenue, signalling a possible resolution to one of Islamabad’s most contentious real-estate cases.
According to official sources, the government has agreed in principle to compensate affected buyers by refunding the original purchase prices paid for their apartments.
The proposal is currently awaiting formal approval from Shehbaz Sharif, after which a public announcement is expected.
High-Level Committee Reviews Legal Options
To oversee the process, the prime minister has constituted a senior committee tasked with reviewing the legal, financial, and administrative dimensions of the case.
The panel is led 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.
Also read: Constitutional Court Upholds Contempt Powers in Landmark Ruling
Under its mandate, the committee will hear representations from apartment owners, review court rulings, and propose a solution that complies with judicial orders while addressing the grievances of buyers. The committee is expected to submit its recommendations by May 8.
Until a final decision is taken, authorities have been directed to suspend enforcement measures. Agencies including the Capital Development Authority, police, and district administration have been instructed not to take action against residents.
Origins of the Dispute
The controversy dates back to 2005, when CDA allotted 13.5 acres of prime land to a private developer for a five-star hotel project. The lease was granted for Rs. 4.8 billion, with the developer paying an initial 15 percent before taking possession.
However, repeated payment defaults triggered years of rescheduling and litigation. In 2019, the Supreme Court of Pakistan ordered the developer to pay Rs. 17.5 billion to revive the lease.
Only Rs. 2.9 billion was paid, leaving outstanding liabilities of around Rs. 14.5 billion, which ultimately led to lease cancellation in 2023.
Compounding the issue, authorities say the developer violated the original agreement by constructing 263 residential apartments on land designated for hotel use. Despite public warnings that the project was under legal dispute, sales reportedly continued.
Eviction Notices and Current Occupancy
Following recent directions from the Islamabad High Court, CDA officials, accompanied by police, issued eviction notices to occupants, asking them to vacate within seven days.
Also read: From Imran Khan to Aitzaz Ahsan: Big Names Who Own Apartments in One Constitution Avenue
Officials estimate that only 69 of the 263 apartments are currently occupied. Many units are held by investors, while several occupied flats are reportedly used for short-term rentals rather than permanent residence.
What Happens Next?
If approved, the compensation plan could mark a significant shift in how long-running property disputes involving defaulting developers are resolved. For apartment owners, the proposal offers a potential financial exit after years of legal limbo.
The committee’s findings and the prime minister’s final decision are now seen as critical to determining whether the case concludes through compensation—or returns to prolonged litigation.
