The federal government has decided in principle to compensate One Constitution Avenue apartment owners in Islamabad by paying their original purchase prices, with a formal announcement expected after approval from Prime Minister Shehbaz Sharif.
A high-level committee formed by the prime minister has begun reviewing the legal and administrative aspects of the case, according to a Cabinet Division notification.
Law Minister Azam Nazeer Tarar heads the committee, which also includes Minister of State for Interior Talal Chaudhry and the secretaries of the Cabinet Division and Commerce Division.
The committee will review related cases, hear affected apartment owners and propose a course of action that addresses grievances while complying with court orders. It will submit its report to the prime minister by May 8.
The government has directed the Capital Development Authority, the police and the district administration not to take any action against residents until a final decision is reached.
The dispute dates back to 2005, when the Capital Development Authority allotted 13.5 acres to a private developer for a five-star hotel project.
Read: One Constitution Avenue Vacating Begins in Islamabad
The developer secured the lease for Rs4.8 billion after making an initial 15 per cent payment, but later defaulted, triggering litigation and a payment rescheduling.
In 2019, the Supreme Court of Pakistan ordered the developer to pay Rs17.5 billion to restore the lease.
Officials said the company has paid Rs2.9 billion and remains in default of about Rs14.5 billion, leading to the cancellation of the lease in 2023.
Authorities said the developer built 263 residential apartments on the site in violation of the original agreement.
