The Superior Court of Islamabad (IHC) ordered the Federal Government to dissolve the Capital Development Authority (CDA). In a written verdict, Judge Mohsin Akhtar Kayani ruled that the CDA has no legal authority to impose taxes.
The court declared that if the CDA has charged an individual or institution under the names of “direct access” or charges of “passage of passage”, such amounts must be reimbursed. The federal government has been addressed to begin and complete the process of dissolution of the CDA.
Judge Kayani also ruled that, after the solution, all the powers and assets of the CDA should be transferred to the Metropolitan Corporation. The rights of Islamabad citizens must be safeguarded under the law.
The decision occurred in response to a request presented by the Tijji Housing Society and its residents. In the sentence, the Court annulled the SRO of the CDA (legal regulatory order) of June 9, 2015 on the right of passage and access charges. All the actions taken by the CDA under this SRO were declared illegal, and the court ordered that any money raised under it must be reimbursed.
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The sentence observed that the CDA ordinance was originally promulgated for the establishment of the federal government and to carry out development work. However, with a new established government legislation and structures, the Ordinance has lost its practical relevance.
The court concluded that the purpose of establishing the CDA has now been fulfilled and that the government should proceed with its dissolution. He also directed that the Islamabad administration must remain transparent and responsible after the transfer of powers.
In addition, the verdict stated that all administrative, regulatory and municipal functions in Islamabad fall under the law of the local government, which establishes governance through elected representatives. According to this law, taxes cannot be imposed without the approval of the local government. Therefore, the CDA has no legal authority to impose taxes.
It is worth noting that the CDA had imposed taxes on the right of access to gasoline pumps and CNG stations, and direct access taxes to private housing companies with roads that connect to the main roads, all of which were challenged in the Superior Court.
