IHC Rules CDA Right of Way Charges Illegal

The Islamabad High Court has issued a landmark judgment against the Capital Development Authority (CDA), striking down its practice of imposing right-of-way charges on petrol pumps and CNG stations for direct highway access. This ruling also voids the notification issued in 2015 that allowed such fees, and orders the immediate return of all funds collected under it.

Justice Mohsin Akhtar Kayani, in a detailed decision, remarked that the CDA had strayed from its intended purpose, emphasizing it was now up to the federal government to take appropriate measures, which could include dissolving the authority. The court directed that all administrative powers, assets, and functions of the CDA be shifted to the Municipal Corporation of Islamabad (MCI) to ensure the capital is governed in line with the Islamabad Local Government Act 2015.

According to the judgment, any actions by the CDA stemming from its 2015 notification will now be considered null and void. The court underscored that since Islamabad’s affairs are currently regulated under local government law, older conflicting statutes or institutional structures cannot override new legislation. Where harmony is not possible, the older provisions effectively stand repealed.

The decision followed a petition filed by residents of the River Garden Housing Scheme, who highlighted that although their community was developed under CDA rules and approved back in 2001, they were unfairly subjected to additional costs. The court also cited Article 23 of Pakistan’s Constitution, reaffirming every citizen’s right to acquire, hold, and transfer property, subject only to laws made in the public interest.

This ruling is poised to significantly reshape the governance of the capital by reinforcing local government jurisdiction and removing burdensome, previously imposed charges on citizens