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A division bench of the Islamabad High Court has overturned a landmark ruling that declared Pakistan Navy real estate ventures along Rawal Lake illegal.
The Islamabad High Court overturned a landmark single-bench ruling that had ordered the demolition of the Pakistan Navy Sailing Club on the banks of Rawal Lake, invalidated the Naval Farms project, and mandated criminal proceedings against former Chief of Naval Staff Admiral Zafar Mahmood Abbasi. The reversal by a division bench restores the legal status of the naval infrastructure projects in the federal capital and vacates all misconduct directives issued against the former naval chief.
The controversy dates back to early 2022, when then-Chief Justice Athar Minallah issued a sweeping judgment targeting institutional land encroachments across Islamabad. Justice Minallah ruled that the Navy had built the sailing club along a public reservoir without proper environmental clearances or approval from the Capital Development Authority (CDA). The single bench had deemed the Navy’s commercial and residential developments a direct violation of the Islamabad Master Plan and the Margalla Hills National Park conservation framework.
In setting aside the 2022 order, the division bench addressed key points regarding institutional authority, procedural jurisdiction, and real estate development rights within Islamabad's municipal boundaries. The original single-bench order had mandated that the CDA take over the Navy Sailing Club building within 50 days and demolish it, while simultaneously requesting the federal government to initiate criminal and administrative proceedings against Admiral Abbasi for sanctioning illegal constructions.
The overturn effectively removes these mandates, providing relief to both the naval administration and individual plot owners within the Naval Farms scheme in Zone IV of Islamabad. The decision resets a years-long legal dispute between civic regulators, environmental advocates, and military institutions regarding land allocation in the capital enclave.
Historically, Islamabad’s 1960 Master Plan strictly zoned the capital into functional sectors, reserving agricultural, ecological, and institutional zones under the direct control of the CDA. Over the decades, armed forces branches established various welfare foundations, recreational installations, and housing schemes across Zone IV and the catchment areas of Rawal Dam. Environmentalists warned that building along the reservoir compromised the primary source of drinking water for Rawalpindi, leading to civil society petitions that triggered the initial judicial intervention.
The geography surrounding Rawal Dam remains one of the most disputed environmental zones in northern Pakistan. Established in 1962, the reservoir relies on unfiltered runoff from the Margalla Hills. The construction of private estates, institutional clubs, and commercial ventures along the shoreline has drawn continuous friction between civil regulators and developers.
When Justice Minallah issued his original ruling, he argued that state entities must abide by municipal laws with greater rigor than private citizens. His decision emphasized that neither the Navy nor any other military branch possessed independent authority to act as a real estate developer or occupy land reserved for public benefit. The ruling had positioned the Judiciary as a firm check against institutional expansion into green belts.
However, the intra-court appeal argued that the Navy Sailing Club was an operational water-sports training facility essential for naval personnel, rather than a purely commercial venture. The defense maintained that the land was utilized in accordance with state security and institutional welfare mandates, arguing that individual officers acted within institutional permissions rather than through personal misconduct.
The directive targeting Admiral Zafar Mahmood Abbasi, who served as Chief of Naval Staff from October 2017 to October 2020, marked a rare moment where a top military commander faced explicit judicial orders for criminal and administrative inquiry over real estate approvals. The original judgment asserted that sanctioning unapproved construction on public land constituted a breach of oath and misuse of official authority.
By nullifying these findings, the division bench clears Admiral Abbasi’s name of judicial misconduct charges connected to the project. The decision relieves former and serving naval officers involved in the administration of Naval Farms and the sailing club from facing federal anti-corruption inquiries or military court referrals.
This bench ruling changes the precedent set during Justice Minallah’s tenure at the Islamabad High Court. While environmentalists continue to raise concerns over raw sewage and structural encroachments around Rawal Lake, the division bench’s verdict solidifies the legal standing of institutional real estate operations, shifting the dynamic between municipal authorities like the CDA and military welfare wings operating within federal territories.
The court overturned a previous judgment that declared the Navy Sailing Club and Naval Farms illegal, effectively cancelling orders to demolish the club building. It also set aside directions to initiate criminal and misconduct proceedings against former naval chief Admiral Zafar Mahmood Abbasi.
Former Islamabad High Court Chief Justice Athar Minallah issued the original 2022 ruling ordering the club's demolition within 50 days. That ruling held that the military had no authority to engage in real estate development or encroach on public parkland.
The facility was constructed along the catchment area of Rawal Lake, a primary drinking water reservoir for Islamabad and Rawalpindi. Environmentalists and civic regulators argued the construction violated the capital's 1960 Master Plan and national park conservation laws.
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