IHC issues notice to CDA over property transfer fee hike

ISLAMABAD: The Islamabad High Court has issued notices to the Capital Development Authority (CDA) and other related parties, on the petition of the Islamabad Property Dealers Association against the extraordinary increase in property transfer fees and other charges by the CDA, and has sought their response.

Muhammad Ibrahim Abbasi and Justice Raja Inam Amin Minhas heard the case. During the hearing, the court asked the petitioner’s lawyer What transfer fee is this?

To which the lawyer took the position that it is the property transfer fee that includes plot transfer, NOC, general power of attorney, and other related fees.

The petitioner’s lawyer informed the court that the CDA has no authority to increase the fee on its own; this legislative power is only available to the federal government. The court further inquired whether the CDA had not charged fees earlier.

The lawyer stated that the CDA used to charge fees earlier as well; however, the recent increase has been made without any legal amendment, which is against the law.

The petition contended that the CDA has increased the transfer fee from one percent to three percent of the value determined by the FBR.

In addition, a new fee of 0.5 percent has been imposed on title transfer, and a new charge of 0.75 percent has been imposed on non-sale transfers such as family transfers, inheritance, verbal gifts, and GPA-based transactions.