KARACHI: An accountability court on Monday dismissed a contempt application filed against the Federal Board of Revenue (FBR) and the National Accountability Bureau (NAB) over the initiation of auction proceedings for 527 kanals of land owned by Bahria Town Karachi (BTK) in Murree.

Judge Muhammad Mehboob Awan of the Accountability Court No III ruled that the FBR was at liberty to proceed with the recovery proceedings in accordance with the law.

Counsel of BTK submitted that the land in question had been attached on March 5 after the investigating officer (IO) obtained the court’s permission. However, despite the judicial order, FBR officials allegedly initiated auction proceedings through a public notice issued on March 13, in blatant disregard of the law and the court’s authority.

The counsel representing the FBR submitted that the plea was not maintainable as no order of the court had been violated.

The counsel argued that the FBR had only decided to auction the property in question to recover outstanding tax dues from BTK. However, after learning that the court had provisionally attached the property, the FBR approached the court seeking permission to auction the land for tax recovery.

The counsel further contended that NAB subsequently withdrew its application for provisional attachment, which led to the de-attachment of the property.

Meanwhile, the NAB prosecutor argued before the court that the applicant had failed to establish any wilful disobedience, interference, obstruction or violation of any order passed by the court.

He added that the provisional attachment was recalled by the IO pursuant to direction issued by the competent authority and strictly in accordance with law.

After hearing all sides, the court dismissed the plea and held that the FBR was at liberty to proceed with the recovery proceedings in accordance with the provisions of the Income Tax Ordinance, 2001, read with the Income Tax Rules, 2002.

“The contempt plea of the learned counsel for BTK is hopelessly misconceived and is found to be meritless. The application for contempt proceedings against the officials of FBR and NAB along with other applications connected with this application or incidental thereto are hereby dismissed,” the judge ruled.

Published in Dawn, July 14th, 2026