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Islamabad High Court Orders Dissolution of CDA

28 June, 2025 18:13

The Islamabad High Court “(IHC) has directed the federal government to dissolve the Capital Development Authority (CDA).

Islamabad High Court Justice Mohsin Akhtar Kayani, while issuing a written decision, declared the CDA’s SRO on right-of-way and access charges null and void.

The court decision states that all actions of the CDA under the SRO are declared illegal and that any money received by the CDA from anyone under the SRO should be returned.

The court said that the CDA should be dissolved and all its powers and assets transferred to the Metropolitan Corporation. The government should initiate and complete the process of dissolving the CDA.

The Islamabad High Court said in its decision that the CDA Ordinance was enacted for the establishment of the federal government and its development work. The new laws and governance have rendered the CDA Ordinance ineffective. The purpose of establishing the CDA has been achieved, and now the government should dissolve it.

According to the court decision, the federal government should ensure that the Islamabad administration is transparent and accountable after the transfer of powers, that the rights of the citizens of Islamabad are protected under the law, and that all administrative, regulatory, and municipal frameworks of Islamabad operate under the Local Government Act.

The decision further states that the Islamabad Local Government Act is a special law for governance through elected representatives. According to the law, taxes cannot be imposed without the approval of the local government. The CDA has no legal authority to impose taxes. The CDA had imposed a right of access tax on petrol pumps and CNG stations.

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