Islamabad, June 28, 2025: The Islamabad High Court (IHC) on Saturday ordered the federal government to initiate the process of dissolving the Capital Development Authority (CDA) and transfer its powers and assets to the Metropolitan Corporation Islamabad (MCI).
In a detailed written verdict, Justice Mohsin Akhtar Kayani declared that the CDA’s Statutory Regulatory Order (SRO) No. 576(I)/2015, which pertained to ‘Right of Way’ and ‘Access Charges,’ is illegal, ultra vires, and issued without lawful authority or jurisdiction. The court struck down the SRO and ruled that all actions taken under it are null and void. Furthermore, any amount collected under the order must be refunded to the respective individuals or entities.
“The SRO No. 576(I)/2015 dated 09.06.2015 is declared illegal, ultra vires, without lawful authority or jurisdiction. It is hereby struck down. Any amount collected under this SRO is liable to be refunded, and all related actions are declared void and without legal effect,” the verdict stated.
The court observed that the CDA Ordinance, originally meant for federal development functions, had lost its practical relevance due to the evolution of new legal and governance frameworks. It held that the objectives for which the CDA was established have been fulfilled, and therefore, the authority must be dissolved.
Justice Kayani emphasized that Islamabad’s governance now falls under the Islamabad Local Government Act, a special law aimed at ensuring administration through elected local representatives. The court ruled that under this law, taxes cannot be levied without the approval of the elected local government, rendering CDA’s imposition of taxes without legal authority.
The judgment also pointed out that the entire administrative, regulatory, and municipal structure of Islamabad should now operate transparently under the MCI, ensuring the protection of citizens’ rights and accountable governance.
It is noteworthy that the CDA had previously imposed ‘Right of Access Tax’ on petrol pumps and CNG stations and levied direct access charges on housing societies for road access. These actions have now been officially invalidated by the court’s ruling.
The decision marks a significant shift in Islamabad’s urban governance and is expected to redefine the capital’s administrative structure going forward.
