LAHORE: A division bench of the Lahore High Court on Thursday struck down the reference filed by the Security and Exchange Commission of Pakistan (SECP) against the sugar mills of Pakistan Tehreek-i-Insaf’s leader Jahangir Khan Tareen and the family of Leader of Opposition in National Assembly Shehbaz Sharif for an investigation in light of the report of a sugar inquiry commission.

The bench observed that the reference was filed on the basis of procedural unfairness and for being a dictated exercise. However, the bench observes the SECP can initiate proceedings afresh according to law. The reference was filed by the Security and Exchange Commission of Pakistan (SECP) to the Federal Investigation Agency (FIA).

The bench also struck down the act of the FIA of writing a letter to the SECP for nominating its two officers to become part of a Joint Investigation Team.

The bench observed that the attorney general had not been able to refer to any provision, which empowers the FIA to solicit services of officers from another agency.

The bench observed that the call-up notices do not make a reference to the sugar inquiry commission’s report and proceed on the basis of information available with the investigation team regarding money laundering and financial/ corporate fraud.

Doubtless, the offence of money laundering is part of the Schedule of the 1974 Act and is within the cognizance of FIA, the bench said, adding that it cannot be left to the choice of a person to plead that he be charged for an offence under one or the other laws.

The bench further held that the FIA had lawfully and competently taken cognizance of the matters of alleged corporate fraud that led to an increase in the sugar’s price.

“This court cannot short circuit the FIA’s powers to proceed in the matter. This argument, at best, is an argument of double jeopardy and the time to raise it has yet to arrive,” the verdict held.

JDW Sugar Mills and Farooqi Pulp Mills of Tareen and Al-Arabia Sugar Mills of the Shehbaz’s family had approached the high court against multiple actions of the federal government, the SECP and the FIA.

The petitioners had also challenged a letter written by Mirza Shahzad Akbar, advisor to the prime minister, to the FIA and the subsequent call-up notices issued by the agency to them.

However, the bench in its verdict finds nothing wrong with this act on the part of the advisor saying he was merely acting pursuant to the decision of the cabinet.

“We have no reason to doubt the bona fide of the federal government and are un-persuaded on the arguments regarding ulterior motives to lurk under the surface,” said the bench.

Copyright Business Recorder, 2020