ISLAMABAD – In a landmark decision, the Islamabad High Court (IHC) has ordered the dissolution of the Capital Development Authority (CDA) and the transfer of all its powers, responsibilities, and assets to the Metropolitan Corporation Islamabad (MCI). The judgment, authored by Justice Mohsin Akhtar Kayani, was issued on Saturday in response to a legal challenge regarding CDA’s regulatory jurisdiction.
The IHC declared the CDA’s Statutory Regulatory Order (SRO) No. 576 (I)/2015, which imposed ‘Right of Way’ and ‘Access Charges’, as unlawful and beyond its jurisdiction. The court ruled that all actions taken under this SRO were void and directed that any revenue collected through it must be refunded to the respective parties.
“The said SRO is declared illegal, ultra vires, and without lawful authority or jurisdiction. It is hereby struck down. Any amount collected under this order must be returned, and any actions taken pursuant to it are null and void,” the judgment stated.
The court noted that the CDA Ordinance, originally enacted to support federal development, has lost its relevance due to subsequent legislative developments, particularly the Islamabad Local Government Act. With the emergence of this newer governance framework, the court asserted that the core objectives of the CDA have already been fulfilled.
It further emphasized the need for the federal government to ensure that Islamabad’s administrative and municipal affairs are now governed transparently and accountably under elected local representatives.
The ruling also clarified that, under current law, no tax can be levied without the formal approval of the local government — rendering CDA’s taxation attempts, including those on petrol pumps, CNG stations, and housing societies, entirely invalid.
