IHC Seeks Explanation on CDA Property Fee Hike

The Islamabad High Court has taken notice of the CDA property fee hike after the Islamabad Property Dealers Association filed a petition challenging the sharp increase in property transfer fees and other related charges by the Capital Development Authority (CDA).

A bench comprising Muhammad Ibrahim Abbasi and Justice Raja Inam Amin Minhas heard the case and issued notices to the CDA along with other concerned parties, asking them to submit their responses regarding the CDA property fee hike.

During the hearing, the court questioned the lawyer representing the petitioners on what type of fee was under dispute. The lawyer explained that the charges in question include the property transfer fee, covering plot transfers, NOCs, general power of attorney, and similar related services.

Arguing against the CDA property fee hike, the lawyer maintained that the CDA lacks the legal authority to unilaterally increase such fees, as only the federal government holds the legislative power to impose or revise these charges. When the court inquired whether the CDA had previously levied these fees, the lawyer confirmed they did, but stressed that the recent substantial increases were made without any formal legal amendment.

According to the petition, the CDA has raised the property transfer fee from one percent to three percent of the value assessed by the Federal Board of Revenue (FBR). Additionally, a new fee of 0.5 percent has been introduced on title transfers, while a 0.75 percent charge has been imposed on non-sale transfers such as family transfers, inheritances, verbal gifts, and transactions under general power of attorney.

The Islamabad High Court has now sought a detailed reply from the CDA and other stakeholders, signaling that the matter will undergo further scrutiny to determine if the CDA property fee hike stands on firm legal ground.