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Islamabad High Court Orders Federal Government to Dissolve CDA, Declares Access Charges Illegal
Big shake-up in Islamabad: IHC orders dissolution of CDA, declaring its tax powers illegal. All assets to shift to Metropolitan Corporation. Refunds ordered for access charges.
ND
by News Desk
2025-06-28
Islamabad High Court Orders Federal Government to Dissolve CDA, Declares Access Charges Illegal

The Islamabad High Court (IHC) has directed the federal government to dissolve the Capital Development Authority (CDA) and transfer all its powers and assets to the Metropolitan Corporation Islamabad (MCI). The ruling comes as the court declared CDA's SRO on right of way and access charges null and void, citing it as illegal and unconstitutional.

The written verdict was issued by Justice Mohsin Akhtar Kayani, who stated that all actions taken by the CDA under the now-invalid SRO must be reversed, and any funds collected under it should be returned to the respective parties.

End of the Road for CDA

The court held that the CDA Ordinance, which initially established the authority to manage the federal capital’s development, has lost its practical relevance due to evolving governance laws. The judgment observed that with the formation of local governance structures and elected representation under the Islamabad Local Government Act, the need for CDA's existence has diminished.

“The purpose of establishing the CDA has been fulfilled… now the government should dissolve it,” the judgment stated.

Power Shift to Elected Local Government

The court emphasized that all administrative, regulatory, and municipal functions must be performed under the Local Government Act, and that the Metropolitan Corporation Islamabad, governed by elected representatives, should oversee city administration going forward.

The ruling clarified that CDA does not have the legal authority to levy taxes, including the right of access tax imposed on petrol pumps and CNG stations, as such fiscal measures must be approved by a functioning local government.

Federal Government's Role

The IHC has ordered the federal government to immediately begin and complete the dissolution process of CDA, ensuring a smooth transition of responsibilities and assets to MCI. The judgment also mandates that the new setup ensures transparency, accountability, and protection of citizens’ rights in Islamabad.

This verdict marks a major shift in the governance of the capital and raises significant implications for urban development, taxation, and decentralization of power in the federal territory.

 
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CDA

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