ISLAMABAD: A local court in Islamabad has upheld the cancellation of the e-parking contract by the Directorate of Municipal Administration (DMA) under the Metropolitan Corporation Islamabad (MCI), declaring the decision legal, rule-based, and in the public interest.
In a press release, the DMA said the court’s decision is a major step towards ensuring administrative transparency, financial discipline, and better urban services.
The e-parking contract with the private company AJCL was cancelled in June 2025 because the company broke several rules in the agreement. Problems included misuse of money and not starting the promised cashless parking system.
After the contract was cancelled, AJCL took the matter to court through several legal steps. The company filed a contempt of court case, asked to take back control of the parking sites, and tried to stop the planned auction of the Smart Parking Project.
The court rejected all these petitions, calling the company’s claims baseless and confirming that the DMA acted within legal and administrative bounds.
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Legal experts and public circles have welcomed the court’s verdict. A senior DMA official said the decision strengthens efforts to promote accountability, good governance, and efficient city management.
“This ruling shows that any attempt to block reforms or misuse public resources will not be accepted,” the official added.
The public has also appreciated the citizen-focused policies of DMA and MCI. In their statement, the authorities reaffirmed their commitment to improving municipal services through modern, transparent, and efficient systems — including the Islamabad Smart Parking Project.
It is important to mention that the e-parking contract with the private company AJCL was cancelled in June 2025 because the company broke several terms of the agreement.
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According to a spokesperson of the Capital Development Authority (CDA), the Directorate of Municipal Administration (DMA) ended the contract due to repeated violations, negligence, and financial irregularities. AJCL failed to meet its responsibilities, which affected public safety and caused major revenue losses.
Investigations showed that the company did not set up the promised digital payment system, collected cash without proper records, and ignored important security measures. This caused thefts and problems for the public. Even after many warnings, AJCL did not fix these issues.
As a result, the DMA took legal action, registered an FIR at Kohsar Police Station, and officially cancelled the contract.
