Govt moves to compensate One Constitution Avenue apartment buyers

The federal government has decided in principle to compensate apartment owners of One Constitution Avenue at their original purchase prices, with a final announcement expected after approval from Prime Minister Shehbaz Sharif, The News reported. 

Authorities, including the Capital Development Authority, police and district administration, have been directed to suspend any action against residents until a final decision is taken.

A committee constituted by the prime minister has also started reviewing the matter, according to a notification issued by the Cabinet Division. The body is headed 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 committee has been tasked with examining legal and administrative aspects of the case, hearing affected buyers and proposing a course of action in line with court orders. It is expected to submit its report by May 8.

The dispute dates back to 2005 when the CDA allotted 13.5 acres of land to a private developer for a hotel project. The lease was awarded for Rs4.8 billion, but the developer defaulted on payments, leading to prolonged litigation.

In 2019, the Supreme Court directed the developer to pay Rs17.5 billion to restore the lease. Only Rs2.9 billion has been paid so far, leaving an outstanding amount of about Rs14.5 billion, which led to cancellation of the lease in 2023.

Officials said the developer constructed 263 residential apartments on the site in violation of the original agreement. Despite public notices warning buyers of the project’s disputed status, sales continued.

Out of the total units, 69 apartments are currently occupied, while the rest are held by investors. Among the occupied units, only a limited number are used for permanent residence, with many rented out on a short-term basis.

Last week, CDA officials, accompanied by police, issued seven-day eviction notices to residents following the Islamabad High Court's directions.