In a landmark decision, the Islamabad High Court (IHC) has ordered the federal government to dissolve the Capital Development Authority (CDA) and transfer all its powers and assets to the Metropolitan Corporation Islamabad (MCI). The court ruled that the purpose for which the CDA was originally formed has been fulfilled, and its functions must now be handed over to the elected local government.
Justice Mohsin Akhtar Kayani issued the written judgment on Saturday, declaring that the CDA’s Statutory Regulatory Order (SRO) related to ‘Right of Way’ and ‘Access Charges’ is null and void. The IHC also ruled that all actions taken under this SRO are illegal, and any funds collected through it must be refunded to those affected.
According to the court, the CDA Ordinance was initially created to support federal development activities in Islamabad. However, with the implementation of the Islamabad Local Government Act, which provides for governance through elected representatives, the practical need for the CDA has ended. The court emphasized that transparency, accountability, and legal protection for citizens must now be ensured through MCI.
The ruling also clarified that no authority can impose taxes without the approval of the elected local government. The court stated that the CDA overstepped its legal boundaries by imposing charges like the ‘Right of Access Tax’ on fuel stations and housing societies. These taxes are now deemed illegal and unenforceable.
Furthermore, the IHC directed the federal government to initiate the legal process of dissolving the CDA and completing the power transfer in a structured and timely manner. This decision marks a major shift in Islamabad’s governance, with the court reinforcing that elected local bodies must play the central role in managing the city’s affairs.
This verdict is expected to reshape Islamabad’s administrative system by ensuring that municipal functions are carried out under democratic control. It also sets a precedent for limiting the role of federal institutions where local governments are empowered by law.