The Lahore High Court (LHC) has declaring the collection of "Adda Fee" from the public transport not utilising General Bus Stands (GBSs) as illegal, has observed that DCOs and Nazims could not impose this Fee on vehicles plying outside the Stands.The court issued this order in a writ petition filed by owner of Khan Brothers Flying Coach and President of Flying Coach and Adda Owners Association Faisalabad Israr Ahmad Khan.
Petitioner submitted that levy of tax being collected from all buses at the rate of Rs 500 for AC with seating capacity 36 or above, Rs 300 AC coasters with seating capacity of less than 36, but more than 16, and Rs 250 AC wagons with seating capacity up to 16.
The secretary local government and rural development department on January 5, 2007 had directed all the DCOs and TMOs to collect Adda/parking fee only within the premises of General Bus Stand and not on National Highway or outside the General Bus Stand.
Petitioner said that despite this direction, in majority of the cities of Punjab including Lahore the tax was being collected outside the prescribed premises even at extra rate by local governments.
Law officer and legal advisor to DCO Lahore opposed the writ petition arguing that the DCO in exercise of powers under section 6 and 8 of the West Pakistan Bus Stands and Traffic Control (Lahore) Ordinance 1963 through a notification on October 28, 2008 notified different bus terminals as an extension of General Bus Stand. They said it was specified in the notification that it has been issued to check the evasion of Adda Fee by the transporters having their route permit originating from and terminating at General Bus Stand, Lahore, following checking/exit points will also be treated as an extension of GBS, Lahore.
Rebutting these arguments, the petitioner alleged that the said notification was a device to frustrate the order passed by the secretary local government. He further said that the DCO was not competent to extend the limits of General Bus Stand and levy Adda fee on vehicles plying on roads.
The court observed that the general bus stands were run and controlled by the Regional Transport Authority with power to grant permission to establish bus stand and to fix fee payable by vehicles, which used the facility of the bus stand.