IHC orders abolition of CDA

Express Tribune

9 hours ago

The Islamabad High Court (IHC) on Saturday ordered the federal government to dissolve the Capital Development Authority (CDA) and transfer all its powers and assets to the Metropolitan Corporation Islamabad (MCI).
In a detailed verdict, Justice Mohsin Akhtar Kayani ruled that the CDA has no legal authority to impose taxes.
The court further declared that any amount collected by the Authority from individuals or institutions under the guise of "Right of Way" or direct access charges must be refunded.
The federal government was instructed to initiate and complete the process of dissolving the CDA and transfer all its powers and assets to the Metropolitan Corporation Islamabad (MCI).
The judgment emphasised that the rights of Islamabad's citizens must be protected under the law. The ruling was issued in response to a petition filed by Taj Residencia Housing Society and its residents.
The court also declared SRO dated June 9, 2015 — regarding CDA's right-of-way and access charges — null and void, along with all actions taken under it, labeling them as illegal. Any funds collected under this SRO must be returned.
Justice Kayani noted that the CDA Ordinance was originally enacted to establish the federal capital and oversee its development, but due to evolving governance structures and new laws, its practical relevance has ended. The original objectives of the CDA have been fulfilled, and it is now appropriate for the government to formally dissolve the authority.
The court also directed that following the transfer of powers, the Islamabad administration must operate in a transparent and accountable manner.
The judgment reaffirmed that Islamabad's entire administrative, regulatory, and municipal framework is governed by the Local Government Act, which mandates that no tax could be imposed without the approval of the elected local government. Therefore, CDA lacks any legal authority to levy taxes.
It is worth noting that CDA had imposed right-of-access charges on petrol pumps and CNG stations, and direct access taxes on private housing societies for connecting to main roads. These charges were challenged in the IHC, resulting in this significant decision.
Rains prompt monsoon action
On the other hand, the CDA has finalised a special action plan for the monsoon season and issued a notification outlining the responsibilities of all relevant departments to ensure effective implementation.
On the instructions of CDA Chairman, Member Administration Talat Mehmood has been assigned to oversee the plan. According to the notification, special teams will be deployed following a survey of illegal basements and low-lying areas.
Flood relief camps and other safety measures will be established to handle any emergency situations. A Flood Relief Cell will remain operational from July 1 to September 30, headed by the Director of Emergency and Disaster Management. A dedicated helpline will also be set up, and assistance will be available via rescue and fire brigade services.
Heads of relevant departments will appoint focal persons at the relief camps. The sanitation department will operate under the authority of the relief camps. A special operation will be launched against makeshift houses and illegal constructions.