KARACHI, Dec 1: An accountability court issued non-bailable warrants for the arrest of M. B. Abbasi, a former chief of the National Development Finance Corporation, in a loan default case against Sadruddin Ghanchi, a business tycoon.

Judge Hasan Feroze of the AC-2 ordered the prosecution agency to arrest the former NDFC chief and another absconding accused, Hashim Ghanchi son of Sadruddin Ghanchi, and produce them before the court on Dec 16.

The case against Sadruddin 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.

Ghanchi was arrested on Sept 17 by the FIA near the Sindh High Court.

Abbasi, booked in the case for sanctioning the loan in violation of the existing rules and without securing guarantees from the borrowers, is stated to have fled the country after being released on parole during the PML-N government.

Abbasi was released on parole on March 16, 1998, by the Sindh government for a period of two months. His parole was later extended till he was granted a “one-time” permission on Aug 19, 1998, by the federal government to travel abroad. He immediately left the country and since then he has been absconding in several corruption cases.