IHC dismantles CDA’s authority, calls for full transfer of powers to Islamabad’s local government

In a major reshaping of Islamabad’s governance structure, the Islamabad High Court has ordered that the Capital Development Authority (CDA) be dissolved and its functions handed over to the Metropolitan Corporation Islamabad (MCI). The decision, issued by Justice Mohsin Akhtar Kayani, signals a shift towards empowering local government institutions in line with modern legal frameworks.

At the center of the ruling is the CDA’s controversial SRO from 2015, which imposed “Right of Way” and “Access Charges” on petrol stations, CNG units, and housing societies. The court not only struck down the SRO as illegal but also directed that any money collected under it be refunded. Justice Kayani noted that the CDA acted beyond its legal bounds, lacking any statutory authority to impose such taxes without local government approval.

The verdict reflects a broader legal argument: the CDA Ordinance — once central to Islamabad’s development — has outlived its practical use. With the enactment of the Islamabad Local Government Act, the court held that the responsibility of governance must now rest with elected representatives under a transparent and accountable system.

The IHC made it clear that the governance of Islamabad should fully transition to the municipal framework outlined in the Local Government Act. It added that taxation and administrative authority must follow lawful procedures and respect democratic oversight.

This decision invalidates the CDA’s past revenue practices and reinforces that no institution can act outside the law, regardless of its legacy. For Islamabad’s residents, it marks a move toward more localized and representative governance.