You are currently viewing Islamabad High Court Reforms Compensation Policy in CDA Land Acquisitions

Islamabad High Court Reforms Compensation Policy in CDA Land Acquisitions

Streamlining the Process and Minimizing Delays for Islamabad’s Development

The Islamabad High Court (IHC) has recently introduced a significant change in the compensation policy related to land acquisitions by the Capital Development Authority (CDA), according to a report published on November 10. The court’s decision to eliminate separate compensations for Built-Up Properties (BUPs) aims to make the acquisition process more efficient and reduce fraudulent claims, benefiting both the CDA and local residents.

Key Points of the Ruling

Justice Babar Sattar issued the ruling on October 30, suspending the CDA’s previous policy, which provided additional plot allotments to BUP affectees. This provision, intended to offer added compensation to those with developed properties, had reportedly opened doors to misuse and slowed down sector development through inflated and fraudulent claims. The IHC’s new order mandates that compensations should be based solely on the value of the land itself, rather than including separate allowances for BUPs.

Alignment with CDA Ordinance, 1960

The court’s decision aligns with the Capital Development Authority Ordinance of 1960, which doesn’t specify compensations based on built-up property claims. This change directly impacts CDA’s Rehabilitation Policies from 1984, 1994, and later regulations from 2007, all of which have allowed such compensations. To comply with the ruling, the CDA Board must revise these policies within a 90-day timeframe to reflect the new regulations.

Benefits for Residents and Developers

For those affected by stalled sectors and land disputes, the IHC ruling is seen as a positive development. Local residents and developers are hopeful that this streamlined approach will accelerate land acquisitions, sector development, and plot handovers. By focusing compensation strictly on land values, the CDA can now avoid delays often caused by inflated or contested BUP claims.

Timely Compensation for Pending Cases

In addition to policy revisions, the ruling emphasizes the need for swift compensation distribution in pending cases. The CDA has been instructed to finalize all compensations within 90 days, enabling faster project completion and contributing to Islamabad’s urban development goals.

The ruling represents a pivotal moment for Islamabad’s real estate sector, setting a precedent for transparency and efficiency in public land acquisition processes. The changes are expected to encourage more streamlined development, benefiting Islamabad’s residents and future investors alike.


For more updates on real estate and property developments in Pakistan, stay tuned to PropertiesPakistan.com. We bring you the latest news and insights to help you make informed investment decisions.

Leave a Reply