- IHC orders any amount collected by CDA must be repaid.
- Purpose that CDA was created for has been met: IHC
- The court says that taxes cannot be introduced without the approval of the local government.
Islamabad: Islamabad High Court (IHC) on Saturday ordered the federal government to initiate and end the process of dissolving Capital Development Authority (CDA).
Justice Mohsin Akhtar Kayani handed the written judgment and ordered that all powers and assets on CDA should be transferred to Metropolitan Corporation Islamabad (MCI).
The Supreme Court declared CDA’s statutory legislative order (SRO) regarding ‘right to road’ and ‘access fees’ as invalid. All actions taken by CDA during this SRO have been declared illegal. IHC also determined that any amount collected by CDA under this SRO must be repaid.
“SRO no. 576 (i)/2015 dated 09.06.2015 has been declared illegal, Ultra Vires, without legal authority or jurisdiction, therefore the same has been beaten here.
The court noted that the CDA Regulation was initially adopted to establish the federal government and its development work. However, the verdict declared that the CDA Ordinance practical usefulness has ceased to exist due to new laws and government frameworks. The court claimed that the purpose for which the CDA was created has been fulfilled, therefore the government should dissolve it.
IHC emphasized that, after the transfer of powers, it must be ensured that the Islamabad administration operates transparent and responsible and that the rights of Islamabad are protected by the law.
The court emphasized that the entire administrative, regulatory and municipal framework for Islamabad is now operating under the law of the local government. Islamabad Local Government Act is a special law for governance through elected representatives. IHC clarified that, according to the law, taxes cannot be imposed without the approval of the local government, therefore CDA has no legal authority to introduce taxes.
It is relevant to mention that CDA had previously imposed ‘right to access tax’ on petrol pumps and CNG stations as well as a direct access tax on housing communities for access from main roads. These actions are now considered illegal by the court’s decision.
