- Committee to review cases, present report.
- The PM’s approval for the compensation plan is awaited.
- Authorities have been ordered to stop the action.
ISLAMABAD: The federal government has decided in principle to compensate One Constitution Avenue apartment owners by paying them their original purchase prices, with a formal announcement expected after approval from Prime Minister Shehbaz Sharif.
A high-level committee, constituted by the prime minister, has started work to examine the legal and administrative aspects of the 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 Home Affairs Talal Chaudhry along with secretaries of the Cabinet Division and Commerce Division.
The committee has been tasked with reviewing all related cases, listening to affected apartment owners and proposing a balanced course of action to address the complaints while ensuring compliance with court orders. He is due to present 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 directed not to take any action against the residents.
The problem arises from a long-running dispute over the project. In 2005, the CDA allotted 13.5 acres of land to a private developer for the construction of a five-star hotel. The company got the lease for Rs 4,800 crore and was given possession after making an initial payment of 15 per cent. However, it subsequently defaulted on payments, leading to lengthy rescheduling and litigation.
In 2019, Pakistan’s Supreme Court ordered the developer to pay Rs 17.5 billion to reinstate the lease. So far, the company has paid only Rs 2.9 billion and remains in arrears of about Rs 14.5 billion, leading to cancellation of the lease in 2023.
Officials also noted that, in violation of the original agreement, the developer 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 units, officials say only a small proportion are used as permanent residences, and many are short-term rentals.
Following directions from the Islamabad High Court, CDA officials, accompanied by police, recently issued seven-day eviction notices to the occupants in compliance with court orders.
Despite earlier warnings, the government has now taken steps to compensate affected buyers, signaling a conciliatory approach aimed at resolving the protracted dispute.
Originally published in The News
