ISLAMABAD: The Islamabad High Court (IHC) has ordered the federal government to immediately begin the dissolution of the Capital Development Authority (CDA) and transfer its powers, assets, and functions to the Metropolitan Corporation Islamabad (MCI).
This directive was issued in a detailed verdict by Justice Mohsin Akhtar Kayani, marking a significant shift in Islamabad’s administrative structure.
The court emphasized that the transition must be carried out without delay to bring the capital’s governance in line with modern democratic and legal standards.
CDA Declared Redundant Under New Legal Framework
The judgment stated that the CDA Ordinance, once instrumental in establishing and developing Islamabad, has lost its relevance.
With the implementation of the Islamabad Local Government Act, the functions previously performed by CDA are now legally under MCI’s jurisdiction.
The court stressed that elected local representatives must be empowered to administer the city, ensuring democratic governance and legal transparency.
Continuing CDA’s operations where they overlap with MCI was deemed “legally redundant” and unnecessary.
Illegal Taxation Nullified, Refunds Ordered
The court also declared CDA’s imposition of taxes such as right of way and access charges on petrol pumps, CNG stations, and housing societies as unlawful.
It ruled that the CDA has no legal authority to independently impose any form of taxation in Islamabad.
The SRO under which these charges were levied has been annulled, and the IHC has ordered that all funds collected under this directive be returned to the affected entities.
The verdict reaffirms that taxation powers lie solely with the local government, as per the Islamabad Local Government Act.
This ruling is being seen as a major win for legal governance and transparency in the capital, urging a full transfer of authority to elected bodies for better accountability.
