ISLAMABAD/ LAHORE: The National Accountability Bureau (NAB) on Monday approached the Federal Constitutional Court (FCC), challenging the recent Lahore High Court (LHC) order for the anti-graft body to place a termination report on the closure of an investigation against Punjab Chief Minister Maryam Nawaz before an accountability court.
The LHC directive was challenged by NAB on the same day as an accountability court approved the closure of the Chaudhry Sugar Mills investigation against CM Maryam and her father, ex-premier Nawaz Sharif.
In a petition filed before the FCC, the NAB additional prosecutor general requested the court to set aside the LHC’s Feb 4, 2026 order.
The bureau argued that the LHC while issuing the order failed to consider that the investigation had been closed following amendments to the National Accountability Ordinance (NAO), 1999. It maintained that the termination decision, taken with the concurrence of the NAB chairman and the prosecutor general, resulted in her “absolute exoneration”.
Accountability court okays ending investigation against Punjab CM, her father in sugar mills case
The case originates from an inquiry authorised on Nov 14, 2018, against Maryam Nawaz and Nawaz Sharif over suspicious transactions in the accounts of Chaudhary Sugar Mills Ltd (CSML). The allegations involved corruption, corrupt practices and money laundering under Section 9(a) of the NAO, 1999.
Maryam Nawaz was arrested on Aug 8, 2019, during the inquiry and remained in physical remand for 48 days before being sent to judicial custody. On Oct 31, 2019, a division bench of the LHC granted her post-arrest bail, subject to two surety bonds of Rs10 million each and the deposit of Rs70 million with the court, along with her passport.
The inquiry was upgraded to a formal investigation on April 3, 2020. However, after amendments introduced through the National Accountability (Amendment) Act, 2022, the investigating officer concluded that the establishment and investments of CSML were private in nature, involved no public funds, and did not constitute corruption under Section 9(a). The investigation was therefore closed under Section 31-B(1) of the NAO with the approval of the NAB chairman.
Subsequently, Maryam Nawaz approached the LHC seeking the release of the Rs70 million she had deposited under protest in compliance with the bail order.
While hearing the application, the LHC observed that once an inquiry had been converted into an investigation, any decision to withdraw or terminate NAB proceedings must follow the investigation-closure safeguards set by Parliament.
The court held that although the NAB chairman could form an opinion, legal termination required approval from the accountability court under Sections 9(c) and 4(4)(b) of the NAB law.
The LHC therefore directed NAB to submit its termination report before the accountability court in Lahore, instructing the judge to decide the matter within one month of receiving the report.
In its petition before the FCC, NAB argued that the LHC overlooked provisions in the NAB law that empower the chairman — in consultation with the prosecutor general — to withdraw or terminate proceedings without court approval if the case is deemed unjustified.
It further contended that the high court exercised suo motu to interpret the law, which, according to NAB, falls outside the high court jurisdiction.
According to the petition, Sections 9(c), 4(4)(b) and 31-B(2) of the NAO outline independent procedures for handling investigations. NAB argued that the LHC issued its order without complying with Order XXVII-A of the Civil Procedure Code, which requires notice to the Attorney General for Pakistan when a court interprets statutory provisions.
The petition added that Section 31-B(1) carries a presumption of constitutionality and does not violate Articles 4 and 10-A of the Constitution, as no trial or judicial proceedings had commenced in the matter.
Accountability court approves closure
Meanwhile, Judge Rana Muhammad Arif of the accountability court in Lahore approved the closure of the CSML investigation on an application moved by NAB on the LHC order.
The judge stated the NAB closed the investigation in accordance with the law, adding that Maryam Nawaz could withdraw her surety bond of Rs70 million furnished against the post-arrest bail granted to her in the case.
The NAB in its application apprised the accountability court that the LHC had directed it to place a termination report before the accountability court for the closure of the investigation.
Published in Dawn, March 17th, 2026
