HYDERABAD: Federal Investigation Agency (FIA) Hyderabad on Monday night arrested former Hyderabad Chamber of Commerce and Industry (HCCI) president Seth Goharullah allegedly for running an illegal gas-fired power plant and selling electricity. A low-ranking Hyderabad Electric Supply Company (Hesco) employee was also picked up.

FIA produced them in the consumer court on Tuesday and obtained Seth Goharullah’s five-day remand.

FIA officials had intercepted the vehicle carrying the former HCCI chief at Hyderabad bypass toll plaza while he was on his way to the city from Karachi. The agency had registered a case against him under Sections 409, 419, 420, 468, 471, 109 and 34 of the Pakistan Penal Code (PPC) read with Section 5(2) of the Prevention of Corruption Act, 1947.

The case was lodged vide crime No.59/24 by Hesco’s sub-divisional officer (SDO) Mohammad Zohaib Sherwani.

According to SHO Masroor Baloch of the FIA, Seth Goharullah had obtained a licence to establish the plant on plot No. A-19 which was subsequently cancelled. A raid was conducted by FIA on plot No. A-4, where a 3.6MW plant was installed illegally. “The party [Goharullah] got industrial tariff for firing boiler, not for generation,” argued the SHO while talking to journalists after obtaining the remand. It was selling inexpensive electricity when compared with Nepra (National Electric Power Regulatory Authority) tariff, thus causing a loss of Rs670m to Hesco, he said. He said FIA would find out as to who were facilitating the suspect’s illegal acts.

Underground power plant

FIA had conducted an inquiry (19/24) into the running of illegal gas-fired power plant and selling electricity to different clients. The plant was set up on the plot of Fateh Textile Mills (FTM), located off Autobhan Road in the SITE area.

According to the FIR, Goharullah did not get licence from Nepra. Sherwani’s written complaint dated March 16, 2024 is part of the FIR.

The power generation story broke when Hesco disconnected supply to a mall owned by Goharullah’s family off Autobhan Road, according to an FIA source, who said the mall was not affected by suspension of power supply although it did not have any generators. “This made Hesco to ascertain the source of electricity supply to the mall,” the source said.

Hesco consumers were tabbed

An inquiry into the matter revealed that the source was an underground 3.6MW power plant, said the source, adding that out of the 3.6MW, 3.3MW was meant for the mall.

According to the FIR, an FIA team along with Hesco officers had raided the textile mill premises on March 16 and found generators of varying capacity running on gas, besides a diesel generator of 59kVA. It said that 15 to 20 electric panels were found fixed for controlling power generation and distribution.

“Electricity was being distributed to Hesco’s registered / unregistered consumers,” said the FIR. All these machineries were seized during the raid.

It said that Hesco’s M&T officials found that illegal electricity was being transferred to Barkat Power Limited, standing on plot No. A-19, off Autobhan Road.

‘SSGC cheated’

FIA inquiries with Sui Southern Gas Company (SSGC) revealed that the FTM had obtained gas connection ‘only for boiler’ and not for power generation, distribution and transmission. SSGC confirmed (to FIA) that FTM was neither a captive powerhouse nor was it supposed to sell surplus electricity to power distribution companies.

A Hesco SDO, according to the FIR, disclosed to FIA in response to its query that a loss of Rs673m had been caused to government exchequer due to FTM’s illegal act from 2015 to 2024. Nepra informed FIA that in terms of fee for generation licence, a loss of Rs801,806 was also borne by government.

FTM’s earlier petition in SHC

According to Advocate Ayaz Tunio, he had earlier filed a petition on behalf of M/s FTM in the Sindh High Court, Hyderabad circuit, which had restrained Hesco, FIA and police from taking any coercive action against FTM. “This restraining order was, however, recalled by court later on,” Advocate Tunio said on Monday night. According to the lawyer, he has not been engaged again by his client so far.

According to FIA, the petitioner in its petition had claimed to have obtained NOC from the then Hesco chief executive officer, Muzaffar Abbasi, on Sept 8, 2011, showing approval of the power utility and its board of directors (BoD). The NOC pertain to FTM’s intention to supply power to its own units, sister concerns / associate companies through its own distribution system against payment as per Nepra tariff.

On verification, FIA found the NOC fake and its outward number was in fact given to an ‘appreciation letter’ issued to Hesco’s executive director while then CEO disowned the signature on the NOC, saying that it was forged.

Published in Dawn, September 4th, 2024