03 November 2004	Wednesday	19 Ramazan 1425

KARACHI, Nov 2: A privatized bank has challenged in the Sindh High Court the Federal Investigation Agency authority to investigate its affairs.

The UBL submitted through Advocate Nafees A. Siddiqui that the FIA could only probe offences specified in the FIA Act, 1974, schedule if committed in respect of corporations or organizations under the control or administration of the federal government. It also questioned the FIA power to launch an inquiry suo motu in the absence of a complaint.

The bank maintained in its writ petition that the agency had commenced a fresh inquiry on the pretext of investigating a fraud committed by a cashier of the bank posted at its Sharjah (UAE) branch when it was still a nationalized bank. The offence was thoroughly probed by the bank through a domestic inquiry. The offender was also tried and convicted by a Sharjah criminal court. The new inquiry amounted to reopening a past and closed chapter and was hit by the constitutional guarantee against double jeopardy.

The petition also objected to an FIA notice (under Section 5 of the 1974 Act) requiring it to produce documents pertaining to or disclosing information about a bank account without obtaining prior permission from a competent court under Section 94 of the criminal procedure code.

The FIA stated in its rejoinder that the impugned inquiry was initiated with the permission of the competent authority under the law. It was investigating allegations that former UBL president Zubyr Soomro appointed 300 consultants in the bank on 'fabulous remunerations', most of them getting Rs 250,000 per month. Most of the appointees were working in junior positions in other banks and institutions and the appointments were made in violation of the rules. They were extended loan facilities against an unprecedented 03 per cent margin.

The agency said a lawyer was given away a 'luxurious residence' for Rs 1.2 million against the prevailing market price of Rs 5 million. A TV actress was appointed to senior position on Rs 150,000 as monthly salary. Officers posted in the bank's international division acquired foreign citizenship, permanent residency and immovable property. They used bank's stationery and sponsored each other.

Since the allegations are specific, the FIA said in its rejoinder, the UBL management is responsible for providing the record, which it alone had in its custody. The allegations pertain to the period when it was a federal government-controlled bank. However, one of the officers alleged to have indulged in wrongdoing was still working in the bank. Permission for seeking the requisite information was obtained from the special court (offences in banks), the competent forum, under Section 94 of the CrPC. Yet the bank management was not cooperating, the agency alleged.

PLEA DISMISSED: The Sindh High Court dismissed on Tuesday a suit against demolition of commercial structures in the basement of a building on Tariq Road to facilitate its use as a parking lot.

The plaintiff, claiming to be owner-developer of 'Kehkashan Project', sought an injunction against the Karachi Building Control Authority to restrain it from demolishing the converted basement.

The KBCA contested the suit through Advocate Shahid Jamil Khan, who submitted that the plaintiff was merely running a health club in the basement and was not the owner of the building. The suit was liable to be dismissed on that score alone.

As for the law and regulations, a basement reserved for parking could not be put to commercial use and rented out. The authority has started a campaign to demolish unauthorized structures in basements. Thirty-three violative basements have already been demolished in various areas falling within its jurisdiction. The plaintiff has failed to produce any title document or cite the law or rule that permitted him to convert a basement meant for parking in violation of the approved plan and the building laws and regulations, the KBCA counsel said.

PAYMENT ORDERED: A division bench of the Sindh High Court while hearing a constitutional petition filed by 10 account-holders of the Kutchery Post Office Saving Deposit Scheme ordered that principal amount be paid to the petitioners before Eid while the issue of payment of mark-up be expedited.