Islamabad Digital Car Parking Project Faces Corruption Probe by MCI

TechJuice Exclusive: The Islamabad digital car parking project, launched last year to modernize the city’s parking system, is now at the center of serious corruption allegations. In response, the Metropolitan Corporation Islamabad (MCI) has formed an inquiry committee to investigate the tendering process and fee collection methods linked to the initiative.

Last year, the Capital Development Authority (CDA) outsourced parking fee collection and engaged a private company to run the Islamabad digital car parking project on a revenue-sharing basis. However, sources told TechJuice that following complaints of embezzlement in revenue and a questionable tendering process, the MCI chief ordered an in-depth probe. An FIR has also been registered against the company’s owner and staff over these allegations.

According to the agreement, the contractor was to collect parking fees using a digital system, with the MCI receiving 75% of the revenue while the company retained 25%. The company was also authorized to install digital equipment to support a transparent, cashless system. However, sources said only a few minor machines were set up, falling short of creating a full digital mechanism.

Allegations of Underreporting and Steep Fee Hikes Burden Citizens

The contractor also faces accusations of underreporting the number of parked vehicles to divert funds. Meanwhile, last year, the MCI and CDA increased parking charges under the same project, doubling car fees from Rs50 to Rs100 and motorcycle fees from Rs20 to Rs50, adding to citizens’ financial burden.

Reports of overcharging by the contractor further compounded concerns. The Directorate of Municipal Administration (DMA) filed two complaints at Margalla and Kohsar police stations against the company. While Kohsar police registered a case, Margalla police are still reviewing the complaint.

As per the FIR dated April 25, 2025, the DMA and the private company signed a revenue-sharing agreement on April 24, 2024. During a recent inspection at Daman-e-Koh, officials found the contractor’s staff allegedly manipulating parking records to show fewer entries, reducing the revenue due to MCI.

Currently, the company manages parking fee collection across eight major sites, including Centaurus Mall, Daman-e-Koh, and Rawal Dam Park.

In light of these developments, the MCI chief has set up a committee led by DMA Director Dr. Anam Fatima. The committee will review the contractor selection process, contract terms, and whether the company met the required technical and financial qualifications. It will also examine detailed revenue data from all parking sites, assess the payment model, and highlight any discrepancies or contract violations.

The committee is expected to submit its findings within 15 days.

When contacted, Islamabad Chief Commissioner Muhammad Ali Randhawa said, “Since the inquiry is ongoing, I can’t comment on specifics at this point. But one thing is clear: we are not against the concept of the Islamabad digital car parking project. However, if corruption is proven, we will take strict action to protect public and government interests.”

Company’s Viewpoint

AJCL (Pvt) Ltd, the contractor behind Islamabad’s digital parking project, has denied all allegations of irregularities and poor performance. The firm stated that the project was launched in April 2024 after fulfilling all legal and procedural requirements under PPRA Rules. AJCL said it invested over Rs160 million in equipment, software, and deployment but faced operational hurdles due to CDA’s failure to provide necessary infrastructure like electricity connections.

The company termed the June 2025 contract termination as unlawful and claimed the CDA’s return to the manual “perchi” system lacks transparency and revenue tracking. AJCL has taken the matter to court, calling the corruption accusations baseless while expressing readiness to resolve the issue through arbitration.