The Islamabad High Court (IHC) has ruled that buyers of apartments in the One Constitution Avenue project do not possess ownership rights following the cancellation of the development’s lease. This decision was delivered in a comprehensive judgment on Monday, upholding the Capital Development Authority’s (CDA) termination of the multi-billion-rupee project’s lease.
The court dismissed petitions filed by the developer M/s BNP (Pvt) Ltd, investors, and other stakeholders, stating that apartment purchasers cannot claim independent ownership over the properties. Instead, they may seek to recover their investments directly from the developer.
Chief Justice Sardar Muhammad Sarfraz Dogar issued the judgment, highlighting the developer’s failure to meet financial obligations outlined in a 2019 Supreme Court order, which had previously reinstated the lease. This order required the developer to deposit Rs17.5 billion over eight years, secured by bank guarantees, and allowed lease termination if payments were defaulted.
The dispute originates from a 2005 agreement between the CDA and BNP for a five-star hotel project, which was later transformed into the luxury residential and commercial complex known as One Constitution Avenue. Although the lease was initially cancelled in 2016, the Supreme Court restored it in 2019 under strict conditions.
In its ruling, the IHC emphasized that the Supreme Court’s conditions were binding and mandated strict adherence. It found that BNP repeatedly missed payment deadlines and failed to provide acceptable bank guarantees. The court rejected BNP’s contention that delays caused by the CDA justified their non-compliance, stating such arguments do not excuse failure to fulfill essential financial commitments.
Furthermore, the court confirmed that the CDA followed due process by issuing prior notices and allowing ample opportunity to remedy defaults before terminating the lease. Allegations of mala fide conduct against the CDA were dismissed, with the court affirming the authority’s actions were within legal powers and aligned with previous judicial mandates.
Regarding the rights of apartment buyers, the court clarified that their claims depend on the validity of the developer’s lease. Since the lease was lawfully terminated, no ownership rights can be granted to the buyers. However, Justice Dogar noted that affected buyers retain the option to pursue legal action against the developer to reclaim their investments.
The judgment also reiterated that CDA’s management of public land must comply with legality, fairness, and judicial instructions. This ruling arrives amid ongoing controversy surrounding the project, including reports of eviction notices and police presence at the site last week, which have raised public concern.
Notably, apartments in the building are reportedly owned by several prominent individuals, including politicians and former officials. The case has drawn significant attention due to its broader implications for high-value real estate developments in Islamabad and the enforcement of development leases involving public land.
