ISLAMABAD: The federal government has decided in principle to compensate apartment owners at One Constitution Avenue by offering refunds based on original purchase prices, aiming to resolve a prolonged property dispute linked to a defaulting developer.
Officials said a formal announcement will follow approval from Prime Minister Shehbaz Sharif. Meanwhile, a high level committee has begun examining the legal and administrative dimensions of the case. The panel, led by Law Minister Azam Nazeer Tarar, includes Minister of State for Interior Talal Chaudhry and senior government officials.
The committee will review all related cases, consult affected residents, and propose recommendations that align with court directives. It is expected to submit its report by May 8. In the interim, authorities have instructed the Capital Development Authority, police, and district administration to suspend any action against occupants.
The dispute dates back to 2005, when the Capital Development Authority allotted land for a five star hotel project. However, the developer defaulted on payments after acquiring the lease, triggering years of litigation and financial restructuring.
In 2019, the Supreme Court ordered the developer to clear outstanding dues to restore the lease. Despite partial payments, significant liabilities remained unpaid, leading to lease cancellation in 2023. Additionally, the developer violated terms by constructing 263 residential apartments on the site.
Although authorities issued warnings about the disputed status, sales continued. Currently, only a fraction of the apartments are occupied, with many used for rental purposes.
Recently, eviction notices were issued following court directions. However, the government’s compensation plan may provide relief to affected buyers while addressing the long standing dispute.
