KARACHI, Sept 18: Sadaruddin Ghanchi, a businessman arrested on Wednesday, was remanded on Thursday in the Federal Investigation Agency custody for interrogation in a loan default case.

The FIA, which had arrested the businessman near the Sindh High Court, produced him in the court of judicial magistrate, South, Naseem Akhtar, around 11am, and sought his 14-day custody. The JM, however, refused to take up the matter for want of jurisdiction.

Then Mr Ghanchi was brought to the special court for banking offences, which had been lying vacant since the retirement of Judge Ikram Hussain Jafferi on Sept 16.

After waiting till 2pm at the banking court, the FIA took the alleged loan defaulter to the court of district and sessions judge, South, who also did not take up the remand application for want of jurisdiction.

Later, the FIA official moved to the drug court, headed by Syed Hasan Shah Bukhari, who remanded Mr Ghanchi in the FIA custody till Sept 24.

The case against Sadaruddin Ghanchi pertained to default on the payment of Rs40 million loan secured from the National Development Finance Corporation in the name of West Pakistan Tank Terminal in 1997. His son, Hashim Ghanchi, was also wanted in the case.