KARACHI: In a landmark decision, Directorate General of Trade Organizations (DGTO) has declared the elections of the Karachi Chamber of Commerce and Industry (KCCI) for the term 2024-26 null and void.
The ruling comes in response to a complaint filed by Arshad Khurshid and others, who alleged significant irregularities in the electoral process.
A post-election complaint filed under Section 14(3)(f)(iii) of the Trade Organizations Act, 2013 (TOA, 2013) by Arshad Khurshid and others regarding alleged irregularities in the elections of KCCI for the term 2024-26.
The DGTO derives authority to adjudicate electoral disputes under Section 14(3)(e) & (f) of TOA, 2013 - Empowering the Regulator as the final forum for appeals in electoral disputes before the conduct of elections and Rule 18(7) of Trade Organizations Rules, 2013 (TOR, 2013)-Declaring the Regulator’s decision on election disputes as final.
According to a decision, passed by Bilal Khan Pasha, Regulator of Trade Organizations, after examining the submissions, reviewing election records, and considering legal provisions, the findings are that KCCI’s deliberate delay in complying with the Regulator’s directives deprived the affected candidates of an opportunity to compete fairly.
The election result submitted by KCCI does not reflect distinction between corporate and associate members elected to the executive committee which is also a violation of Rule 21(5)(b)(c) of TOR, 2013.
In addition, election results submitted by the KCCI for the term 2021, 2022-24 and 2024-26 also do not reflect separation of membership classes. Furthermore, minutes of Annual General Meetings (AGM) of the respective years have also not been submitted to the office of the Regulator whereby any such mention to the effect of approval of mixed voters list and consequent elections of office bearers or otherwise, could have been ascertained order.
After arguments, record perused and relevant provisions of law examined the elections of KCCI are hereby declared null & void under section 14(3)f(iii) of TOA, 2013.
Bilal Khan Pasha, Regulator of Trade Organizations, in the order has asked for a fresh election to be conducted within 60 days under the overall supervision of the Regulator (DGTO).
The Regulator Trade Organization recommends to the Secretary, Ministry of Commerce for the appointment of an Administrator under section 16 of the TOA, 2013 to conduct free, fair and transparent elections.
The DGTO has also directed to the Secretary General, Karachi Chamber of Commerce and Industry to immediately issue both corporate and associate class voters list and send a compliance report in this regard within 07 days of issuance of this Order. Failure to comply will result in further regulatory action under Section 14 of TOA, 2013, including potential suspension of KCCI’s license.
The DGTO said that the Karachi Chamber of Commerce & Industry (KCCI) is one of the largest and most influential trade body in Pakistan, representing 28,806 active members, out of which 16,863 are valid voters.
As a premier chamber of Pakistan, KCCI plays a crucial role in shaping trade policies, advocating for industrial growth, and serving as a bridge between the business community and the government, and its elections must reflect the true will of its members.
The mismanagement and procedural violations committed by its Secretary General and Election Commission have seriously undermined the democratic process, raising serious concerns over the legitimacy of the elected leadership of KCCI.
Copyright Business Recorder, 2025
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