ISLAMABAD: The Islamabad High Court (IHC) has directed the federal government to start and complete the process of dissolving the Capital Development Authority (CDA).
According to a private TV report, Justice Mohsin Akhtar Kayani issued the written order, stating that all powers and assets of the CDA should be transferred to the Metropolitan Corporation Islamabad (MCI).
The high court invalidated the CDA’s Statutory Regulatory Order (SRO) concerning ‘Right of Way’ and ‘Access Charges’, ruling them as invalid. It declared any actions taken by the CDA under this SRO to be illegal. The IHC also mandated that any funds collected by the CDA under this order must be refunded.
“SRO No.576 (I)/2015 dated 09.06.2015 is declared illegal and without authority, therefore nullified. Any money collected under this SRO must be returned, and all actions taken based on it are void,” the court stated.
The court noted that the CDA Ordinance was originally enacted for federal government establishment and development projects.
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However, it found that with new laws and governance structures, the CDA’s practical role has ended. The court emphasized that since the purpose for which the CDA was formed has been fulfilled, the government should dissolve it.
The IHC stressed that after transferring powers, the administration in Islamabad must operate transparently and be accountable, ensuring the rights of the city’s residents are protected by law.
Highlighting that Islamabad now operates under the Local Government Act, the court clarified that taxes cannot be imposed without the local government’s approval. Therefore, the CDA does not have the legal authority to levy taxes.
Previously, the CDA had imposed taxes such as the ‘Right of Access Tax’ on petrol pumps and CNG stations, and a direct access tax on housing societies for road access, all of which are now considered unlawful according to the court’s decision.
