- Committee responsible for reviewing cases and submitting a report.
- PM approval expected for compensation plan.
- The authorities were asked to suspend their action.
ISLAMABAD: The federal government has decided in principle to compensate apartment owners in One Constitution Avenue by paying them their initial purchase price, with an official announcement expected after Prime Minister Shehbaz Sharif’s approval.
A high-level committee, constituted by the Prime Minister, has started work to examine the legal and administrative aspects of this high-profile controversy, according to an official notification issued by the Cabinet Division. The committee is headed by Law Minister Azam Nazeer Tarar and includes Minister of State for Interior Talal Chaudhry, as well as secretaries of the Cabinet Division and Commerce Division.
The committee was tasked with reviewing all related cases, listening to affected apartment owners and coming up with a balanced action plan to address the grievances while ensuring compliance with court orders. He is expected to submit his report to the Prime Minister by May 8.
Until a final decision is taken, authorities including the Capital Development Authority (CDA), police and district administration have been ordered not to take any action against the residents.
The issue stems from a long-running dispute over the project. In 2005, the CDA allocated 13.5 acres of land to a private developer for the construction of a five-star hotel. The company secured the lease for Rs 4.8 billion and obtained possession after making an upfront payment of 15 percent. However, it subsequently defaulted on payments, leading to prolonged rescheduling and litigation.
In 2019, the Supreme Court of Pakistan ordered the developer to pay 17.5 billion rupees to reinstate the lease. The company has so far paid only Rs 2.9 billion and remains in default of around Rs 14.5 billion, which will result in the cancellation of the lease in 2023.
Authorities also noted that in violation of the original agreement, the developer had built 263 residential apartments on the site. Despite public notices warning buyers of the project’s disputed status, transactions continued.
Currently, only 69 of the 263 apartments are occupied, while the majority remain in the hands of investors. Of the occupied housing, officials say only a small proportion is used for permanent residence purposes, with most being rented short-term.
Following the directions of the Islamabad High Court, CDA officials, accompanied by police officers, recently issued seven-day eviction notices to the occupants as per court orders.
Despite earlier warnings, the government is now moving towards compensating affected buyers, a sign of a conciliatory approach to resolving the protracted dispute.
Originally published in The News
