The Islamabad High Court (IHC) has declared the imposition of right-of-way and direct access charges by the Capital Development Authority (CDA) illegal, and has called for the complete dissolution of the CDA.
The court directed the federal government to transfer all of the authority’s powers, assets, and responsibilities to the Metropolitan Corporation Islamabad (MCI) under the Islamabad Local Government Act 2015.
Justice Mohsin Akhtar Kayani issued the detailed judgement, stating that the CDA’s 2015 notification, which imposed taxes on petrol pumps, CNG stations, and housing societies for access from main highways, was unconstitutional and beyond the CDA’s legal authority.
“All actions taken under the 2015 SRO are null and void,” the judgement said. “The CDA has no power to levy taxes such as right-of-way or direct access without the approval of the local government.”
The court also ordered the immediate return of all amounts collected under the now-invalid notification.
According to the decision, the administrative, regulatory, and local government structure of Islamabad is now governed by the Islamabad Local Government Act 2015. Therefore, the court asserted, the original purpose of the CDA has been fulfilled and its legal relevance has ended in the current governance framework.
Key observations from judgement:
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The CDA Ordinance has lost its practical utility due to the enactment of newer laws.
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Islamabad should be administered through elected local representatives, as laid out in the Local Government Act.
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Taxes cannot be imposed without approval from the local government system.
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The CDA’s 2015 SRO lacks legal standing and any action or amount collected under it must be reversed.
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The federal government should initiate the process to dissolve the CDA and ensure a transparent, accountable governance system through MCI.
