The State Prosecutor's office informed the High Court on Wednesday, during a hearing on the matter, that the State will not resume construction in the Matityahu neighborhood of Modi’in Illit (formerly known as Kiryat Sefer).



The announcement is in keeping with a Supreme Court interim ruling of two months ago. The order stated that construction on some 33 high-rise buildings must be halted, and that new residents - some of whom have already paid for their apartments - may not move in.



Peace Now claims that the construction program is illegal in that it is double the size of the plan that was approved. It claims that a small portion of the land, on which construction has not even begun, belongs to the nearby Arab village of Bil'in.



The situation is further complicated by the fact that the route of the security partition separates the Arabs from some of their land, including some of the land earmarked for the new neighborhood. Weekly protests by Israeli leftists and local Arabs have been held at the site to protest the fence.



Peace Now claims it is not demanding that the buildings be razed. "It's not our job to find a solution," a spokesperson said. "We simply saw a law that had been broken, and therefore filed a suit in court. It's the government's job to find a solution."



Asked if Peace Now would be satisfied with a ruling allowing the existing buildings to be occupied and ordering a halt to further construction, she said no, but refused to divulge further details.



The State Prosecution is considering launching a criminal investigation against the private contracting companies that built in the neighborhood.