KARACHI, April 20: A division bench of the Sindh High Court issued notices to the attorney-general, the federal finance ministry, the State Bank of Pakistan and others on Friday in a petition challenging remission of loans amounting to Rs4.14 billion by the Agricultural Development Bank under an SBP scheme.

Petitioner Moulvi Iqbal Haider, Chairman, Awami Himayat Tehrik, submitted that according to press reports, the ADB has written off Rs4.14 billion loans provided to some 46 people for individual projects under a circular issued by the SBP.

The loans were written off or adjusted for political reasons and caused a huge loss to the national exchequer.

The petitioner claimed that the Recovery of Finance Ordinance, 2001, did not permit any customer or account holder to get loans remitted. Recovery suits are required to be filed to retrieve bad debts. The remission orders should be set aside, he requested the court.