- IHC Orders Any amount collected by CDA must be reimbursed.
- The purpose for which CDA was established: IHC
- The court says that taxes cannot be imposed without the approval of the local government.
Islamabad: The Superior Court of Islamabad (IHC) ordered the Federal Government to initiate and complete the dissolution process of the Capital Development Authority (CDA) on Saturday.
Judge Mohsin Akhtar Kayani issued the written verdict, ordering that all the powers and assets of the CDA should be transferred to the Islamabad Metropolitan Corporation (MCI).
The Superior Court declared the statutory regulatory order of the CDA (SRO) related to the “right of passage” and the “access charges” as void and without void. All actions taken by the CDA under this SRO have been declared illegal. The IHC also ruled that any amount collected by the CDA under this SRO must be reimbursed.
“SRO No.576 (I)/2015 dated 09.06.2015 declares itself illegal, ultra viors, without legal authority or jurisdiction, therefore, the same is touched.
The court observed that the CDA ordinance was originally promulgated for the establishment of the federal government and its development work. However, the verdict stated that the practical utility of the CDA ordinance has ceased to exist due to new laws and governance frameworks. The court affirmed that the purpose for which the CDA was established has been fulfilled, therefore, the government should dissolve it.
The IHC emphasized that after the transfer of powers, it must ensure that the Islamabad administration operates transparently and account, and that the rights of Islamabad citizens are protected by law.
The court stressed that the entire administrative, regulatory and municipal framework of Islamabad now operates under the law of the local government. The Law of the Local Government of Islamabad is a special law for governance through elected representatives. The IHC clarified that, in accordance with the law, taxes cannot be imposed without the approval of the local government, therefore, the CDA has no legal authority to impose taxes.
It is pertinent to mention that the CDA had previously imposed the “right tax” to gasoline pumps and CNG stations, as well as a direct access tax to housing companies for access from the main roads. These actions are now considered illegal for the court ruling.
