The federal government has reached an in-principle decision to compensate apartment owners at One Constitution Avenue by paying back their original purchase amounts, in an effort to resolve a long-standing dispute involving a defaulting developer.
According to reports, a formal announcement is expected once Prime Minister Shehbaz Sharif grants final approval.
A high-level committee formed on the prime minister’s directives has begun reviewing the legal and administrative aspects of the case. The committee 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.
The panel has been tasked with examining all related matters, hearing the concerns of affected apartment owners, and proposing a solution that aligns with court rulings. It is expected to submit its recommendations by May 8.
In the meantime, authorities—including the Capital Development Authority, local police, and district administration—have been instructed not to take any action against residents until a final decision is made.
The issue dates back to 2005, when the Capital Development Authority allotted 13.5 acres of land to a private developer for a five-star hotel project. The developer secured the lease for Rs. 4.8 billion and took possession after paying 15% upfront, but later defaulted, leading to prolonged legal disputes.
In 2019, the Supreme Court of Pakistan directed the developer to pay Rs. 17.5 billion to restore the lease. However, only Rs. 2.9 billion has been paid so far, leaving a large outstanding amount. As a result, the lease was cancelled in 2023.
Authorities also noted that the developer violated the original agreement by constructing 263 residential apartments instead of the approved hotel project. Despite public warnings about the disputed status, the apartments continued to be sold.
Officials say only 69 of the 263 units are currently occupied, with many owned by investors. Among those occupied, only a few are used as permanent residences, while others are rented out short-term.
Following directives from the Islamabad High Court, CDA officials, accompanied by police, recently issued seven-day eviction notices to residents.
