The Islamabad High Court (IHC) has initiated proceedings against the Capital Development Authority (CDA) following a legal challenge to the agency”s recent escalation of property transfer fees. Justice Raja Inam Ameen Minhas, overseeing the case brought forth by the Islamabad Property Dealers Association, has demanded responses from all involved entities. During Monday”s hearing, Justice Minhas sought clarification on the specific levies being contested.
The petitioner”s legal representative clarified that the dispute encompasses several charges related to property transfers, including plot transfer fees and ancillary expenses. The representative contended that the CDA lacks the jurisdiction to unilaterally raise these fees, asserting that any legislative changes must originate from the federal government. Justice Minhas questioned whether the CDA had imposed such fees previously. The petitioner”s advocate confirmed prior collections but stressed that past practice doesn”t legitimize arbitrary increases without proper statutory amendments.
The lawsuit alleges the CDA has hiked the property transfer fee from 1% to 3% of the Federal Board of Revenue (FBR) assessed value. Furthermore, a new 0.5% fee has been implemented for title modifications, and a separate 0.75% charge has been levied on non-sale transfers, including familial transfers, inheritances, verbal gifts, and transactions under General Power of Attorney (GPA). The tribunal has postponed the matter until July 18, instructing all respondents to file their responses.