IHC Rules CDA to Dissolve, Powers Transfer to Metropolitan Corporation

- Pakistan - June 28, 2025
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Major Legal Shift: Islamabad High Court Orders Dissolution of Capital Development Authority

In a significant turn of events, the Islamabad High Court (IHC) has ordered the federal government to dissolve the Capital Development Authority (CDA). This ruling comes from Justice Mohsin Akhtar Kayani, who found that the CDA does not hold legal authority to impose taxes on citizens. If you’ve ever felt frustrated about fees related to “direct access” or “right of way” charges, you’ll likely appreciate the implications of this decision.

According to the court’s verdict, any charges levied by the CDA under these categories must be refunded. Justice Kayani has emphasized that after the dissolution of the CDA, all its powers and assets should transfer to the Metropolitan Corporation. This move aims to ensure that the rights of the citizens in Islamabad are upheld and that governance remains accountable and transparent.

The ruling stems from a petition by residents of the Tijji Housing Society, who challenged the legality of the CDA’s fees. The court also nullified the CDA’s 2015 Statutory Regulatory Order (SRO) concerning those charges, marking all actions taken under it as illegal. This means that not only is the CDA facing a major operational overhaul, but citizens also stand to reclaim funds that may have been unjustly collected.

Justice Kayani noted that the original mandate of the CDA has become largely obsolete due to new governance structures and legislation. As the court interpreted, the reason for establishing the CDA has essentially been spent, allowing for its planned dissolution. The administration of Islamabad is now expected to shift towards a local government model, where elected representatives will oversee regulatory and municipal functions.

Additionally, it’s important to understand that under the Local Government Act, taxes can’t be imposed without prior approval from the local government. This pivotal ruling reinforces the idea that good governance comes from transparency and accountability, aligning with the expectations of residents who were burdened by unclear tax regulations.

Historically, the CDA imposed various taxes on petrol pumps and CNG stations, all of which were called into question in the recent court rulings. By dismantling these outdated practices, the court is paving the way for improved governance.

This landmark decision holds the potential to reshape how citizens interact with their government, ensuring that their rights are prioritized. In this changing landscape, staying informed is crucial. If you’d like to learn more about developments like this and stay updated on important local issues, feel free to connect with Pro21st. We’re dedicated to bringing you the insights you need!

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