- Committee to review cases, submit report.
- PM approval pending for compensation plan.
- The authorities have been asked to stop the action.
ISLAMABAD: The federal government has decided in principle to compensate flat owners of One Constitution Avenue by paying them their original purchase prices, with a formal announcement expected after the approval of Prime Minister Shehbaz Sharif.
A high-level committee constituted by the Prime Minister has begun work to look into the legal and administrative aspects of the high-profile controversy, according to an official release issued by the Cabinet Department. The committee is headed by Law Minister Azam Nazeer Tarar and includes Interior Minister Talal Chaudhry along with the Secretaries of the Cabinet Department and the Commerce Department.
The committee has been tasked with reviewing all related cases, listening to affected apartment owners and proposing a balanced approach to address complaints while ensuring compliance with court orders. It is scheduled to submit its report to the prime minister by May 8.
Till 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 stems from a long-running dispute over the project. In 2005, the CDA allotted 13.5 hectares of land to a private developer for the construction of a five-star hotel. The company secured the lease for Rs4.8 billion and was awarded possession after making an initial payment of 15 percent. However, it subsequently defaulted on payments, leading to lengthy restructuring and litigation.
In 2019, the Supreme Court of Pakistan ordered the developer to pay Rs 17.5 billion to restore the lease. The company has so far paid only Rs 2.9 billion and remains in default of approximately Rs 14.5 billion, resulting in the cancellation of the lease in 2023.
Authorities also noted that the developer, in violation of the original agreement, built 263 residential apartments on the site. Despite public announcements warning buyers of the project’s contentious 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 portion are used for permanent residence, with many being rented out short-term.
Following directions from the Islamabad High Court, the CDA officials, accompanied by the police, recently issued seven-day eviction notices to the residents in compliance with the court orders.
Despite earlier warnings, the government has now moved towards compensating affected buyers, signaling a conciliatory approach aimed at resolving the long-running dispute.
Originally published in The News
