LAHORE: The Lahore High Court has allowed a petition by Ramzan Sugar Mills, owned by members of the Sharif family, and directed the Securities and Exchange Commission of Pakistan (SECP) to register its upgraded charges with references to several banks.

The mills administration had requested the SECP to register upgraded charges on its assets to the extent of Rs4.4 billion in favour of three banks. However, the commission denied the request, demanding the mills submit a No-Objection Certificate (NOC) of the National Accountability Bureau (NAB) since the bureau had issued a letter to mark a caution on transfer of shareholding of the mills following a reference against some of its shareholders.

Advocate Salman Aslam Butt, on behalf of the mills, argued before the court that the petitioner was a separate juristic entity from its shareholders and Section 23 of the National Accountability Ordinance 1999 was not applicable to the assets belonging to the sugar mills. He said the shareholders of the petitioner/mills were under investigation by the NAB, but not the petitioner.

In its response, the bureau through its prosecutor justified the act of the SECP.

Justice Ayesha A Malik announced her decision on the petition on Tuesday that she had reserved on May 28.

The judge wrote in the decision that under Section 23 of the ordinance, the chairman of the NAB could prevent transfer of the property or creation of charge on any property owned by an accused or in possession of an accused if there was any inquiry or investigation pending before the bureau.

“In this case, there is no inquiry or investigation against the petitioner-Ramzan Sugar Mills Limited. The investigation is against its shareholders,” observed the judge.

Justice Malik noted that the NAB also admitted that charges worth Rs17.5bn had already been registered in favour of the banks and now the petitioner sought to upgrade its charge.

The judge explained that the letter by the NAB had not prevented the SECP from registration of any charge, as it simply required the commission to mark caution regarding transfer of shareholding of the petitioner/mills.

“Hence, the requirement to approach NAB for an NOC is totally without justification, hence illegal,” the judge held and directed the SECP to register the charge immediately.

The NAB reference accuses Leader of the Opposition in the National Assembly Shahbaz Sharif, being the then Punjab chief minister, of approving construction of a drain in Chiniot worth Rs360 million only to benefit Ramzan Sugar Mills owned by his sons Hamza and Suleman. It said public funds were misused for the benefit of family business of the suspects.

Another investigation accused Hamza, Suleman, Nusrat Shahbaz, Rabia Imran and Javeria Ali of accumulating illegal assets.

Published in Dawn, June 3rd, 2020