Islamabad High Court Rules Buyers at 'One Constitution Avenue' Lack Ownership Rights

The Islamabad High Court has delivered a significant judgment in the "One Constitution Avenue" case, affirming the Capital Development Authority's (CDA) decision to terminate the lease of the high-profile project. This ruling invalidates the ownership claims of apartment buyers, who are now advised to seek recourse against the developer, BNP (Pvt) Limited, for the recovery of their investments. The court's detailed judgment, authored by IHC Chief Justice Sardar Muhammad Sarfraz Dogar, found that the developer failed to adhere to the stringent financial conditions set by the Supreme Court in 2019, which included timely payments and the provision of acceptable bank guarantees.

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buyers of luxury apartments in the development do not have ownership rights and may instead pursue legal remedies against the builder for recovery of their investment.

This decision brings a long-standing dispute to a close, emphasizing the importance of contractual obligations and regulatory compliance. The IHC's observation that the Supreme Court's earlier judgment created a binding framework underscores the gravity of the developer's non-compliance. The court rejected BNP's arguments that administrative delays by the CDA were the primary cause of default, highlighting that such issues did not absolve the petitioner of its fundamental responsibility to meet its financial commitments.

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The court held that the impugned action was in accordance with law and consistent with the framework laid down earlier by the Supreme Court (SC).

For the buyers, this judgment represents a harsh reality, as their investments in luxury apartments in a prime location are now at risk. While the court offers a path to pursue legal remedies against the builder, the process of recovering funds can be lengthy and uncertain. This case serves as a critical lesson for both developers and investors in Pakistan's real estate sector, stressing the need for due diligence, transparency, and strict adherence to legal and financial agreements. The ruling reinforces the authority of regulatory bodies like the CDA and the judiciary's role in upholding the rule of law in large-scale development projects.

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BNP failed to honour its financial commitments under the revised terms. The judgment noted that the developer did not make timely payments of instalments and also failed to furnish bank guarantees in the form acceptable to the CDA.