SHC declares sugar inquiry commission’s constitution, its report illegal

KARACHI: The Sindh High Court (SHC) today (Monday) has declared the constitution of sugar inquiry commission – formed to probe the recent sugar crisis – and its report illegal.

In this regard, the High Court directed the National Accountability Bureau (NAB), the Federal Investigation Agency (FIA) and the Federal Board of Revenue (FBR) to launch a fresh investigation into the matter as per the law.

The verdict was issued by a two-member bench comprising Justice Muhammad Karim Khan Agha and Justice Omar Sial while hearing a petition filed by the sugar mill owners on the government-led commission on sugar price hike.

According to the verdict, the SHC listed eight reasons for quashing the report, including the failure to follow mandatory rules of business and the failure to gazette the notification of the commission within due time.

The high court stated that the commission’s constitution was ‘incomplete’, ‘biased’ and denied the petitioners the opportunity to be heard.

 “The prejudice caused to the petitioners by the report, the action plan and letters which were sent by the adviser on accountability and interior to various statutory bodies and violation and interference in the relevant schemes of law and the Constitution by the executive,” the verdict added.

The verdict further stated, “We hereby declare the impugned notification of March 16, 2020 and the impugned report of May 21, 2020 and all subsequent and consequent orders of the respondents […] to be without lawful authority and of no legal effect and quash the impugned report and all such actions and orders.”

The court also directed the FBR, FIA and NAB to include such people in the investigation who had knowledge about the sugar industry. The court ordered NAB to carry out an independent investigation as per NAB Ordinance.

The SHC also stopped the federal government and all other government departments from directly or indirectly taking any action based on the findings of the report.

It also directed the Competition Commission of Pakistan (CCP), the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) to fulfill their respective mandates in accordance with the law.

The court also forwarded the copies of the verdict to Governor SBP, Chairman NAB the CCP chairman, the SECP chairman, DG FIA and Sindh chief secretary.

Earlier on June 23, around 20 sugar mills in the province had moved the SHC against the report of the inquiry commission and pleaded to quash the report.

The petitioners had contended that the commission was not constituted in accordance with the relevant law and included members who had already made up their minds against the sugar mills.