ISLAMABAD: The federal government has decided in principle to compensate apartment owners of One Constitution Avenue by reimbursing them the original prices paid for their units, with a formal announcement expected after approval from Prime Minister Shehbaz Sharif.
According to an official notification issued by the Cabinet Division, a high-level committee formed by the prime minister has begun reviewing the legal and administrative dimensions of the long-running dispute. The committee is headed by Law Minister Azam Nazeer Tarar and includes Minister of State for Interior Talal Chaudhry, as well as the secretaries of the Cabinet Division and Commerce Division.
The committee has been tasked with examining all related cases, hearing the grievances of affected apartment owners, and proposing a viable course of action that ensures compliance with court directives while addressing public concerns. It is required to submit its report to the prime minister by May 8.
Until a final decision is made, the Capital Development Authority (CDA), police, and district administration have been instructed to refrain from taking action against residents.
The dispute dates back to 2005, when the CDA allotted 13.5 acres of land to a private developer for a five-star hotel project. The lease was secured for Rs4.8 billion, with possession granted after an initial 15% payment. However, the developer later defaulted on payments, leading to repeated rescheduling and legal proceedings.
In 2019, the Supreme Court ordered the developer to pay Rs17.5 billion to restore the lease. So far, only Rs2.9 billion has been paid, leaving an outstanding liability of around Rs14.5 billion. The lease was ultimately cancelled in 2023.
Authorities also noted that, in violation of the original agreement, the developer constructed 263 residential apartments on the site. Despite public warnings about the disputed status of the project, sales continued.
Of the total units, only 69 are currently occupied, while the majority remain with investors. Officials say only a small number are used as permanent residences, with several being rented out on a short-term basis.
Following Islamabad High Court directions, CDA officials recently served seven-day eviction notices to occupants in line with court orders.
Despite earlier enforcement steps, the government’s move toward compensation signals a shift toward a negotiated settlement aimed at resolving the prolonged controversy.
