SHC annuls Sugar Inquiry Commission report

KARACHI: The Sindh High Court (SHC) has annulled the Sugar Inquiry Commission and its report and ordered a new inquiry.

The owners of more than 20 sugar mills in Sindh had challenged the formation and report of the Sugar Inquiry Commission in the High Court. The SHC ordered NAB, FIA, FBR, and other agencies to re-investigate the sugar shortage.

Earlier, the SHC had ordered that no action be taken till the next hearing. The Sugar Mills Association had earlier filed a petition in the Islamabad High Court against the inquiry report.

Later, during the hearing of the case on 11th June, the IHC stayed the implementation of the Chinese Commission report for 10 days and ordered to sell sugar at Rs 70 per kg. However, after a hearing on 20th June, the court in a short judgment rejected the application of the sugar mill owners and struck down the restraining order and allowed the government to take action in the light of the sugar inquiry report.

The Sugar Mills Association maintains that the Chinese Commission of Inquiry did not meet legal requirements during its investigation into the rise in sugar prices and the crisis.

Read more: SC suspends SHC stay order, allows action against sugar mill owners

According to the report, the federation gave a subsidy of Rs 15.20 billion and the Sindh government gave a subsidy of Rs 9.3 billion.

At least 88 billion rupees was given to 88 sugar mills in 5 years. In 5 years, these sugar mills paid income tax of Rs. 22 billion. These sugar mills received income tax refunds of Rs. 12 billion and a total income tax of Rs. 10 billion was paid.