Seizure of bank accounts of Askar Oil, others: LHC describes FIA’s action as ‘a clear transgression’

LAHORE: The Lahore High Court set aside a letter issued by the FIA to the banks for seizure of the bank accounts of the petitioner Askar Oil Services Pvt Ltd and others.

The court allowed the petitions and declared the action of the respondent FIA Director Coordination, a clear transgression of authority and nullity in the eye of law.

The court held that the powers blessed upon members of FIA under Section 5 (5) of the Act of 1974 are not unfettered, rather are subject to certain restrictions and limitations, required to be used sparingly and in cases of exceptional nature.

The court said in the instant case, before issuing the impugned notice for the seizure of bank accounts of the petitioners a mandatory prior permission from the court has not been obtained under Section 14 (2) of the Anti-Money Laundering Act, (AMLA) 2010 and same has been dispensed without any cogent reasons.

The court said under Section 25 of AMLA, 2010 the reporting entities are only required to provide assistance to the investigating officer if such assistance is reasonably required and the investigation is carried out in accordance with the law.

The court said this provision neither empowers FIA to order qua seizure of accounts nor does it mandate or require the reporting entities to take any adverse action against the individuals without due course of law.

The court observed that the action of the respondent authority is not justified as neither nor the respondent IO sought the permission of the court to attach the bank accounts, nor send any notice thereof to the petitioners.

Therefore, it cannot be said that the impugned seizure was made in accordance with the law rather the same has been found to be in contravention of the provision of law, the court concluded.

According to the details the country faced the petroleum crisis in the month of June 202 due to acute shortage of petroleum products.

The government constituted an inquiry commission to probe into the shortage of petroleum products in the country.

The federal cabinet also constituted a committee comprising four federal ministers to examine the report of the commission and to make its recommendations.

The cabinet division forwarded the decision of the federal cabinet along with recommendations of the committee to FIA for investigation to unearth evidence of criminal act. FIA registered eight enquiries to determine the role of government functionaries and any unlawful pecuniary advantages derived by the Oil Marketing Companies (OMCs).

The FIA authorities found that two (OMCs) namely Askar Oil Services Pvt Ltd and Fossil Energy Pvt Ltd committed illegalities while joining hands with the officers of Oil and Gas Regulatory Authority (OGRA) and Ministry of Energy Petroleum Division (MEPD).

Resultantly, FIRs were registered with the police station FIA Lahore in respect of offences. The petitioners were aggrieved of the notice, whereby, the respondent banks have been directed to seize the bank accounts of the petitioners.

Copyright Business Recorder, 2022