The High Court of Islamabad (IHC) ordered the federal government to dissolve the Development Authority (CDA) capital. In a written verdict, judge Mohin Akhtar Kayani ruled that the CDA had no legal authority to impose taxes.
The court said that if a person or an institution had been charged by the ADC under the names of “direct access” or “right of passage”, these amounts must be reimbursed. The federal government was responsible for starting and completing the ADC dissolution process.
Judge Kayani also ruled that after the dissolution, all the powers and assets of the ADC should be transferred to the Metropolitan Corporation. The rights of the citizens of Islamabad must be safeguarded under the law.
The decision came in response to a petition tabled by the Tijji Housing Society and its residents. In the judgment, the court canceled the SRO of the ADC (statutory regulatory order) dated June 9, 2015 concerning prices and accusations of access. All the measures taken by the ADC under this SRO have been declared illegal, and the court ordered that all money collected under it is reimbursed.
Read: Temporary regularized ADC staff
The judgment observed that the ADC ordinance was initially promulgated for the creation of the federal government and to carry out development work. However, with new structures of legislation and governance, the order has lost its practical relevance.
The Court concluded that the purpose of the establishment of the ADC has now been fulfilled and that the government should be dissolved. He also ordered that the administration of Islamabad remains transparent and responsible after the transfer of powers.
In addition, the verdict said that all administrative, regulatory and municipal functions in Islamabad are based on the local government law, which provides governance through elected representatives. Under this law, taxes cannot be imposed without the approval of the local government. Consequently, the ADC has no legal authority to impose taxes.
It should be noted that the ADC had imposed access taxes on petrol pumps and GNC stations, and direct access taxes on private housing companies with roads connecting to the main highways, which were all challenged in front of the high court.
