ISLAMABAD: In a landmark ruling with far-reaching implications, the Islamabad High Court has declared that buyers of luxury apartments in One Constitution Avenue hold no ownership rights, delivering a major legal setback to investors and the project’s developer.

The detailed judgement, issued by Chief Justice Sardar Mohammad Sarfraz Dogar, upheld the Capital Development Authority decision to cancel the lease of the multi billion rupee project. The court ruled that the termination was lawful and fully aligned with earlier Supreme Court directives governing the disputed development.

The case stems from a 2005 lease agreement between CDA and M s BNP Private Limited for the construction of a five star hotel. Instead, the developer converted the project into a high end residential and commercial complex, triggering years of legal battles and regulatory scrutiny.

The court found that the developer failed to meet its financial obligations under a Supreme Court mandated framework that required payment of Rs17.5 billion in structured instalments. Only a fraction of the amount was paid, while bank guarantees and deadlines were repeatedly missed, establishing what the court described as a clear pattern of default.

Rejecting arguments of administrative delays and alleged mala fide intent, the court ruled that CDA had followed due process, including issuing notices and allowing sufficient time to rectify the default. It emphasised that compliance with Supreme Court orders was mandatory and non negotiable.

Crucially, the court held that apartment buyers had no independent legal claim against the authority, as their rights were tied to the validity of the lease itself. However, it clarified that affected investors could pursue recovery of their funds through legal action against the developer, marking a decisive turn in one of Islamabad’s most high profile property disputes.