IHC Directs Government to Dissolve CDA, Shift Authority to Islamabad Metropolitan Corporation

ISLAMABAD – In a landmark ruling, the Islamabad High Court (IHC) has ordered the federal government to dissolve the Capital Development Authority (CDA) and transfer its functions, assets, and powers to the Islamabad Metropolitan Corporation (MCI). The court directive, issued by Justice Mohsin Akhtar Kayani, follows a judgment declaring CDA’s imposition of Direct Access and Right of Way (ROW) charges as unconstitutional and unlawful.

The decision came in response to two petitions challenging a 2015 Statutory Regulatory Order (SRO) through which CDA had levied ROW charges on petrol pump and CNG station owners in Islamabad. According to the court, CDA had collected over PKR 337 million under this SRO, which was ruled invalid on grounds that it bypassed parliamentary approval, violating Article 77 of the Constitution.

Justice Kayani emphasized that the CDA, created in 1960, has fulfilled its foundational mandate, and the administration of Islamabad should now be guided by the ICT Local Government Act, 2015. He stated that municipal functions carried out by CDA are no longer legitimate without adherence to the procedures set forth in the 2015 Act.

The judgment directed the government to commence and complete the process of dissolving the CDA in accordance with Section 52 of the CDA Ordinance, 1960. All relevant responsibilities, powers, and resources are to be handed over to MCI to ensure a transparent and accountable governance structure in the capital.

The ruling further highlights ongoing tensions between CDA’s current administrative role and the legal framework intended for local governance in Islamabad. This development comes shortly after the IHC criticized CDA’s failure to provide vending spaces for licensed pushcart vendors and Prime Minister Shehbaz Sharif’s intervention in fare hikes on CDA-operated public transport.

The court’s verdict aims to reinforce democratic municipal governance in Islamabad, aligning city management with elected local representation and legal mandates.