In a landmark ruling, the Islamabad High Court (IHC) has directed the federal government to dissolve the Capital Development Authority (CDA) and transfer all of its powers and assets to the Metropolitan Corporation Islamabad (MCI). The decision was issued in a detailed written judgment by Justice Mohsin Akhtar Kayani.
Read More: SECP Splurges Rs8 Million on Luxury Hill Station Getaway Amid Austerity Orders, Fee Hikes
The court stated that the CDA Ordinance was originally introduced to facilitate the federal government’s initial development responsibilities in Islamabad. However, with the introduction of new governance structures and laws, the ordinance has lost its practical relevance. The court concluded that the purpose for which CDA was established has been fulfilled, and the government must now move forward with its dissolution.
The judgment emphasized that once the powers are transferred, Islamabad’s administrative system must be made transparent and accountable to protect citizens’ rights under the law. The court also made it clear that, according to the law, no taxes can be imposed without the approval of the local government, and CDA has no legal authority to levy taxes like “right of way” or “direct access” charges.
The IHC declared the CDA’s SRO regarding right of way and access charges as null and void, rendering all actions taken under it unlawful. If CDA collected any amount under this SRO, it must be refunded to the respective parties.
Furthermore, the court noted that CDA had imposed such charges on petrol pumps, CNG stations, and housing societies for direct access from main roads—actions now deemed illegal. The court ordered the immediate cancellation of these taxes.
This ruling is being seen as a significant move towards protecting citizens’ rights and ensuring good governance in the federal capital. Analysts believe the decision will strengthen the metropolitan system and usher in a new era of transparency and accountability in urban administration.
