The Islamabad High Court (IHC) has directed the federal government to dissolve the Capital Development Authority (CDA) and transfer all of its assets, functions, and powers to the Metropolitan Corporation Islamabad (MCI).
In a written judgment issued by Justice Mohsin Akhtar Kayani on Saturday, the court ruled that the CDA’s move to impose right-of-way charges—levied for providing direct access to petrol pumps, CNG stations, and housing societies from main highways—was unlawful. The CDA’s statutory regulatory order (SRO) concerning such charges was declared null and void.
The court further directed the federal government to formally initiate and complete the process of dissolving the CDA. Any revenue collected under the now-invalid SRO is to be refunded, the decision states.
The judgment observed that the CDA Ordinance, originally enacted to oversee development works in the capital, has effectively lost its relevance due to newer governance laws. Going forward, the administrative, regulatory, and municipal affairs of Islamabad are to be handled under the Islamabad Local Government Act.
It was emphasized that governance in the federal capital must be transparent, accountable, and rooted in the rights of citizens as guaranteed by law. The court noted that the Local Government Act mandates governance through elected representatives and prohibits the imposition of taxes without local government approval—rendering the CDA’s authority to levy such charges legally void.
Previously, the CDA had introduced direct access fees not only for fuel stations but also for housing schemes linked to major roadways.
