ISLAMABAD: The federal government has, in principle, decided to compensate apartment owners of One Constitution Avenue by paying them the prices they originally paid, with a formal announcement expected after approval from Prime Minister Shehbaz Sharif.
A high-level committee formed by the premier has started examining the legal and administrative dimensions of the high-profile matter, 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 committee has been assigned to review all related cases, hear the concerns of affected apartment owners, and propose a balanced solution that addresses grievances while ensuring compliance with court orders. It is expected to submit its report to the prime minister by May 8.
Until a final decision is reached, authorities — including the Capital Development Authority, police, and district administration — have been instructed not to take any action against residents.
The controversy originates from a long-standing dispute over the project. In 2005, the CDA allotted 13.5 acres of land to a private developer for the construction of a five-star hotel. The company obtained the lease for Rs4.8 billion and was granted possession after making an initial payment of 15 per cent. However, it later defaulted on payments, leading to extended rescheduling and legal proceedings.
In 2019, the Supreme Court of Pakistan directed the developer to pay Rs17.5 billion to restore the lease. So far, the company has paid only Rs2.9 billion and remains in default of approximately Rs14.5 billion, resulting in the lease being cancelled in 2023.
Authorities further revealed that, in violation of the original agreement, the developer constructed 263 residential apartments on the site. Despite public notices cautioning buyers about the disputed status of the project, transactions continued.
At present, only 69 of the 263 apartments are occupied, while most units remain with investors. Among the occupied apartments, officials noted that only a small number are used for permanent residence, with many being rented out on a short-term basis.
Following directives from the Islamabad High Court, CDA officials, accompanied by police, recently issued seven-day eviction notices to occupants in accordance with court orders.
Despite earlier warnings, the government has now moved toward compensating affected buyers, signalling a conciliatory approach aimed at resolving the prolonged dispute.