KARACHI: The Sindh High Court has reserved its verdict on a set of identical petitions filed against sealing and ownership controversy of the historic Karachi Cotton Exchange building.

A two-judge constitutional bench (CB-I) of the SHC comprising Justice Muhammad Saleem Jessar and Justice Nasir Ahmed Bhanbhro reserved the judgement after hearing augments from the parties concerned at length.

The Federal Investigation Agency (FIA) and the Evacuee Trust Property Board (ETPB) in a joint raid had sealed the historic building on Dec 12, 2025 and declared it a federal trust property. Subsequently, the FIA lodged an FIR against various persons including officers of Karachi Metropolitan Corporation (KMC) for allegedly relying on fake and forged documents to claim ownership of the building.

Thereafter, the KMC, Karachi Cotton Association (KCA), its many members and tenants of the subject building had filed around 10 petitions in the SHC impugning the sealing order and eviction notice as well as the FIR.

Petitioners’ counsel and Sindh AG say KMC is undisputed owner of building; DAG insists ETPB owns subject property

Representing the KMC, Advocate Haider Waheed argued that the ETPB and the FIA had no jurisdiction to treat the Cotton Exchange building as an evacuee property.

He contended that the ETPB had no jurisdiction in relation to the subject building in the province of Sindh since the passage of the 2019 Sindh Act on the subject matter in view of the 18th Amendment.

Appearing on behalf of the KCA, senior counsel Anwar Mansoor Khan and lawyer for tenants Arshad Tayebally also questioned the jurisdiction of both federal institutions and stated that the KCA had been in lawful possession of the property since 1936 through a registered conveyance and valid lease from the KMC and the association had provided offices in the subject property under the valid rental agreements to its members engaged in cotton related businesses.

They also maintained that the building was taken over without due process of law and no notice, as required under Section 25 of Evacuee Trust Properties (Management and Disposal) Act, was issued prior to impugned action.

Sindh Advocate General (AG) Jawad Dero along with additional advocates general Hakim Shaikh and Sagheer Ahmed Abbasi supported the version of the petitioners’ lawyers and argued that the KMC was undisputed owner of the subject property and in lawful possession during pre-partition era and the same remained uninterrupted throughout the partition period and till to date.

They also argued that pursuant to Sections 3 and 8 of the Evacuee Trust Properties (Management and Disposal) Act, 1975, the subject property was never declared as an evacuee property prior to the statutory cut-off date of Jan 1, 1957 and after the cut-off date no property could legally be declared Evacuee Trust Properties (Management and Disposal) Act, 1975, the subject property was never declared as an evacuee property prior to the statutory cut-off date of Jan 1, 1957 and after the cut-off date no property could legally be declared as such.

However, Deputy Attorney General (DAG) Shazia Hanjra contended that the ETPB was the owner of the subject property while an alleged lease of the KMC was based on fabricated documentation.

She claimed that a KMC official in a statement before the inquiry officer of the FIA had also admitted that entries made in the record in respect of ownership of building in favour of KMC were forged as the property belonged to ETPB.

The bench reserved the verdict after all sides completed their arguments.

It may be recalled that another constitutional bench (CB-II) of the SHC headed Justice Adnan-ul-Karim Memon had reserved its order on seven identical petitions about the subject building in March. However, in April, it had re-fixed the matter for a fresh hearing before the CB-I.

Published in Dawn, June 7th, 2026