The federal government has decided in principle to compensate apartment owners at Islamabad’s One Constitution Avenue by paying them their original purchase prices, as it seeks to resolve a long-running property dispute tied to a defaulting developer.
A formal announcement is expected after approval from Prime Minister Shehbaz Sharif, according to a report by a national daily.
A high-level committee set up by the prime minister has started reviewing the legal and administrative dimensions of the case, according to a Cabinet Division notification.
The panel 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 asked to examine all related cases, hear affected apartment owners and recommend a course of action that addresses grievances while remaining consistent with court orders. It is due to submit its report to the prime minister by May 8.
Pending a final decision, authorities, including the Capital Development Authority, police and district administration, have been told not to take action against residents.
The dispute dates back to 2005, when the Capital Development Authority allotted 13.5 acres to a private developer for the construction of a five-star hotel. The developer secured the lease for Rs. 4.8 billion and took possession after making an initial 15% payment, but later defaulted, triggering years of rescheduling and litigation.
In 2019, Pakistan’s Supreme Court ordered the developer to pay Rs. 17.5 billion to restore the lease. The company has so far paid Rs. 2.9 billion and remains in default on about Rs. 14.5 billion, leading to cancellation of the lease in 2023.
Authorities say the developer also violated the original agreement by constructing 263 residential apartments on the site. Despite public notices warning buyers that the project was under dispute, sales continued.
Only 69 of the 263 apartments are currently occupied, according to officials, while most remain with investors. Of the occupied units, only a small number are being used for permanent residence, with many rented out on a short-term basis.
Following directions from the Islamabad High Court, CDA officials accompanied by police recently issued seven-day eviction notices to occupants.
This should hv been done with poor Awam also who were made homeless in the name of encrooachments in Noor Pur Shahan,Mohra Nut,Said pur Kuri road etc.Very unfair.Just to favour high ups,beaurocrats,Parliamentarians,Politicians,Judges, Defense Personnel’s.
Before giving any compensation, claiments
records of taxes,paid by them should be verified. If any discrepancies found, heavy
penalties should be imposed.
The officials who ‘connived’ with the developer should all be taken to task otherwise such problems will keep.on happening
All corrupts. What’s PMs role here? Money only.
Wat about the poor swan whom dwelling have been destroyed at a few hours notice? It’s a shame. Why should the govt compensated? The apartment owners should get their money from the developers!
Pay attention and read the article again. The government and court haven’t been able to extract money from the developers and you expect the general public to do so?
Why GoP should compensate, all these buyers knew background of this project when converted from hotel to all apartments.. Ridicolous of PM to compensate, is govt funds so free to compensate accomplices of fraud, they are no ordinary people, all influentials…. Sad decision by GoP
This project is in complete violation of the agreement signed by the developer and must be cancelled and CDA to take full control. Affected buyers be compensated and it should be reviewed as per ground realities if its dismantled or renovated as per requirements
Why a poor government unable to collect taxes from the elite is made to pay for fraud committed by a developer. The same principle be applied as in the case of Nesla Tower in Karachi
03134979363
Development in Pakistan…one day build tall structures and then after 10 years demolish that. And build another illegal building… So that the next government will demolish it. Criminal mindset to the core. I feel sorry for Pakistan and our people. Criminality and incompetence has gone to max level.
Were apartment owners at Nasla Tower compensated for connivance of developer and SBCA? This is discriminatory and unjust.
This is also unfair to already heavily taxed taxpayers who’s tax money is misused like this by mandateless government.
یہ وطن تمھارا ہے۔۔۔ہم۔ہیں خوا مخواہ اس میں
۔۔۔جس کی لاٹھی اسکی بھینس۔۔طاقتور کے لئے قانون کو مروڑنے کی ایک ژندہ مثال۔۔۔۔
The basic fault is with the developer, who converted the Hotel project to residential apartments for the high ups. CDA connived by departing from agreement. All should pay for committing the irregularities.
Millions of people in Pakistan are affected by the real estate frauds (Al Kabir developers Umar Block) Government is not compensating them because they are common people.
while corruption is on all departments are asleep when crooks have vanished then a namesake process is undertaken for whitewashing..