IHC seeks explanation from CDA on increased property transfer fees

The Islamabad High Court has issued notices to the Capital Development Authority (CDA) and other concerned parties in response to a petition filed by the Islamabad Property Dealers Association, challenging the sharp hike in property transfer fees and other charges.

The petition challenges the recent sharp hike in property transfer fees and related charges by the CDA. A division bench including Justice Muhammad Ibrahim Abbasi and Justice Raja Inam Amin Minhas heard the case. During the hearing, the court questioned the petitioner’s lawyer about the nature of the transfer fee.

The lawyer explained that the fee includes charges for plot transfers, No Objection Certificates (NOCs), general power of attorney, and other related services. He argued that the CDA does not have the legal power to raise these fees on its own, and only the federal government holds such authority under the law. The court also asked if CDA had been charging any fees in the past. The lawyer confirmed that such charges existed before but noted that the recent increase was done without any legal amendment, making it unlawful.

According to the petition, the transfer fee has been increased from one percent to three percent of the property value as assessed by the Federal Board of Revenue (FBR). Additionally, a new 0.5 percent fee has been imposed on title transfers, and 0.75 percent on non-sale transfers such as those related to inheritance, family gifts, and general power of attorney. The court has asked the CDA to submit its reply, and a further hearing is expected after responses are received from the concerned parties.