LAHORE, May 9: The Lahore High Court on Tuesday granted an appeal of former deputy speaker of the National Assembly and PPP leader Haji Nawaz Khokhar and acquitted him in a bank loan default case.

The high court annulled a Rawalpindi accountability court verdict which had disqualified him from taking part in political activities for 10 years. He had also been sentenced to a five-year jail term and fined Rs1 million.

The LHC verdict came after the NAB prosecutor submitted that the bureau did not intend to contest the appeal as all liabilities of the appellant stood cleared after the auction of his textile mills.

Mr Khokhar had taken a Rs13.7 million loan from a bank for setting up a mill. When he became deputy speaker of NA, he allegedly delayed repayment of the loan and after dismissal of the PPP government, NAB sent a reference of ‘wilful default’ against him to the accountability court.

The trial court convicted him and the lender bank initiated the process for loan recovery. The mill was auctioned and loan amount was recovered.

Mr Khokhar challenged the auction proceedings contending that the mill had been sold for a price much less than its actual market value. Bank officers Mian Waqar Ahmad faced charges of unfair banking practices and NAB sent a reference against him.