The federal government has reached a preliminary decision to compensate the owners of apartments at One Constitution Avenue by reimbursing them the prices they initially paid. A formal announcement is expected once Prime Minister Shehbaz Sharif grants approval.
A high-level committee, formed by the prime minister, has commenced its review of the legal and administrative issues surrounding this high-profile dispute. The committee is chaired 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 group’s mandate is to examine all related cases, hear from affected apartment owners, and recommend a fair solution that addresses grievances while adhering to court rulings. The committee is required to submit its findings to the prime minister by May 8. Meanwhile, authorities such as the Capital Development Authority (CDA), police, and district administration have been instructed to refrain from taking any action against the residents until a final decision is made.
This issue originates from a longstanding conflict over the project. In 2005, the CDA allocated 13.5 acres of land to a private developer for constructing a five-star hotel. The developer secured the lease for Rs4.8 billion and was granted possession after paying an initial 15 percent. However, the developer defaulted on subsequent payments, leading to repeated rescheduling and legal battles.
In 2019, the Supreme Court ordered the developer to pay Rs17.5 billion to reinstate the lease. To date, the company has paid only Rs2.9 billion, leaving an outstanding balance of approximately Rs14.5 billion. Consequently, the lease was cancelled in 2023. Authorities also highlighted that the developer violated the original agreement by constructing 263 residential apartments on the site.
Despite public notices warning buyers about the disputed status of the project, transactions continued. Currently, only 69 of the 263 apartments are occupied, with most units held by investors. Of those occupied, only a small fraction serve as permanent residences, while many are rented out short-term.
Following Islamabad High Court directives, CDA officials accompanied by police recently issued seven-day eviction notices to occupants in compliance with court orders. Despite these earlier warnings, the government’s shift toward compensating affected buyers marks a conciliatory effort to resolve the prolonged dispute.
