In a landmark ruling, the Islamabad High Court (IHC) has directed the federal government to initiate the CDA dissolution process and hand over all powers and assets to the Metropolitan Corporation Islamabad (MCI). The court ruled that the Capital Development Authority (CDA) has outlived its original purpose.
Court Declares SRO Illegal
Justice Mohsin Akhtar Kayani authored the detailed verdict, which struck down CDA’s Statutory Regulatory Order (SRO) No. 576(I)/2015. This SRO had allowed CDA to impose ‘Right of Way’ and ‘Access Charges’ on entities like petrol pumps, CNG stations, and housing societies. The IHC declared the SRO “illegal, ultra vires, and without lawful authority.” As a result, any money collected under this order must be refunded.
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CDA’s Role Deemed Obsolete
The court found that CDA was initially formed to manage Islamabad’s early development under a now-outdated framework. It ruled that administrative and regulatory functions should now rest with elected local representatives under MCI.
Local Government Act Takes Precedence
According to this law, taxes can only be levied with the local government’s approval—rendering CDA’s unilateral taxation attempts invalid.
Emphasis on Transparency and Accountability
The court stressed that after transferring authority, the Islamabad administration must operate transparently and respect citizens’ legal rights. The judgment calls for an accountable system led by elected representatives, moving away from bureaucratic control.
This decision not only nullifies CDA’s tax policies but also reshapes the future of Islamabad’s governance, reinforcing democratic control and legal oversight over municipal affairs.
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