ISLAMABAD, May 4 — The Islamabad High Court issued a detailed judgment on Monday upholding the cancellation of the lease for the One Constitution Avenue project. Chief Justice Sardar Muhammad Sarfraz Dogar ruled that individuals who purchased luxury apartments in the multi-billion-rupee development do not possess legal ownership rights. The court found that the developer, M/s BNP (Pvt) Limited, failed to meet the financial obligations and payment deadlines set previously by the Supreme Court. According to the verdict, the Capital Development Authority (CDA) acted within the law when it terminated the lease due to these defaults. The court stated that affected buyers should instead pursue legal action against the builder to recover their investments.
Islamabad High Court has upheld the cancellation of the One Constitution Avenue lease, ruling that apartment buyers have no ownership rights. pic.twitter.com/WLu0oGFjrY
— The Pakistan Daily (@ThePakDaily) May 4, 2026
Quick Facts
- The Islamabad High Court upheld the termination of the One Constitution Avenue lease.
- The court ruled that apartment buyers have no independent ownership rights over the property.
- The developer failed to pay structured installments totaling billions of rupees to the CDA.
- Judges dismissed claims that administrative delays by the CDA excused the developer’s default.
- Affected investors were advised to seek financial recovery through lawsuits against the builder.
- The Prime Minister recently formed a committee to review the situation following eviction reports.
The Islamabad High Court on Monday issued a detailed verdict in a case pertaining to the One Constitution Avenue project in Islamabad, upholding the cancellation of the multi-billion-rupee project’s lease.#DialoguePakistan #Buyers #luxury #OneConstitution #AvenueApartments pic.twitter.com/uFAsg1raEJ
— Dialogue Pakistan (@DialoguePak) May 4, 2026
The dispute dates back to 2005, when a lease for a hotel was converted into a high-end residential project. While the Supreme Court had previously offered a chance to restore the lease through a strict payment plan, the IHC noted that the developer did not provide acceptable bank guarantees or timely payments. The judgment emphasized that because the primary lease was lawfully canceled, any secondary rights claimed by apartment buyers also became void.
Recent tensions at the site escalated last week when reports surfaced of police and CDA officials serving eviction notices to residents. Several prominent political and legal figures are reportedly among those who own units in the building. While the court has sided with the regulatory authority, Prime Minister Shehbaz Sharif has intervened by halting immediate enforcement actions to allow a high-level committee to review the case. The state remains committed to balancing the enforcement of judicial orders with the protection of citizens’ investments in the capital’s real estate sector.
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