Islamabad High Court Orders Dissolution of CDA

The Islamabad High Court (IHC) has instructed the federal government to commence and finalize the dissolution of the Capital Development Authority (CDA). This directive was issued in a written decision by Justice Mohsin Akhtar Kayani.

As part of the ruling, all powers and assets currently held by the CDA are mandated to be transferred to the Metropolitan Corporation Islamabad (MCI). This transfer aims to consolidate administrative functions under a single entity.

CDA’s SRO Declared Null and Void

The high court has invalidated the CDA’s Statutory Regulatory Order (SRO) concerning ‘Right of Way’ and ‘Access Charges’. Consequently, any actions undertaken by the CDA under this particular SRO have been declared unlawful. The IHC has further mandated that all funds collected by the CDA through this SRO must be reimbursed to the payers.

Details of the Order

“SRO No.576 (I)/2015, dated 09.06.2015, is hereby declared illegal, beyond authority, and without lawful jurisdiction, and is therefore struck down. Any amounts collected under this SRO must be refunded, and actions taken under it are void,” the court stated.

Rationale Behind the Decision

The court noted that the CDA Ordinance was initially created to facilitate the establishment and development works of the federal government. However, the court’s decision stated that the CDA Ordinance’s practical relevance has diminished due to new laws and governance structures. The court concluded that the original purpose of the CDA has been fulfilled, justifying its dissolution by the government.

Ensuring Transparency and Accountability

The IHC emphasized that following the transfer of authority, it is crucial to ensure the Islamabad administration operates with transparency and accountability. Furthermore, the court stressed that the rights of Islamabad’s residents must be protected by law.

The court pointed out that Islamabad’s entire administrative, regulatory, and municipal framework now functions under the Local Government Act. This act is designated as a special law for governance via elected officials. The IHC clarified that taxation without local government approval is illegal, thus the CDA lacks the legal standing to impose taxes.

Notably, the CDA had previously imposed a ‘Right of Access Tax’ on petrol stations and CNG stations, along with a direct access tax on housing societies accessing main roads. These actions are now considered illegal because of the court’s verdict.