• Terms joint action by FIA, ETPB to vacate building ‘unjustified’
• Rejects federal bodies’ claim that the land is a trust property
• Backs Karachi Cotton Association in dispute over ownership

KARACHI: A fresh twist has emerged in the unfolding controversy over the historic Karachi Cotton Exchange Building (KCEB), as the Karachi Metropolitan Corporation (KMC) has openly rejected the claims of the Federal Investigation Agency (FIA) and the Evacuee Trust Property Board (ETPB), throwing its weight behind the Karachi Cotton Association’s (KCA) stance in the high-profile ownership dispute.

Clarifying his position without any ambiguity, City Mayor Barrister Murtaza Wahab told Dawn that the building belongs to the KMC, calling the recent joint action by the FIA and ETPB “unjustified”.

“The KMC owns the building,” the mayor said when contacted, distancing the city government from the federal agencies’ assertion that the property was evacuee or trust land.

Asked whether the city administration stood by the KCA’s version of events, Mayor Wahab responded briefly but firmly: “Yes, they are right,” lending significant weight to the association’s claim that it, under a valid lease arrangement, occupies the invaluable building, given its prime location, historical significance and continued commercial use.

Only last week, the FIA and the ETPB had claimed to have “recovered” and “vacated” the KCEB located on I.I. Chundrigar Road in a “joint operation,” declaring it a federal trust property.

In a joint statement, the FIA and ETPB had stated that the KCEB is a trust property as per federal government’s gazette notification, and hence the title of this property is vested in the federal government.

During the operation, the statement said, it was found that the KCA had been illegally occupying the premises, keeping multiple tenants inside the building and charging them rent without any lawful authority.

The two agencies stated that the premises were secured in the presence of FIA and ETPB officials as well as representatives of the KCA.

“All occupants and tenants were offered an opportunity to safely retrieve their personal belongings before the premises were sealed under their lock and key,” the statement said, adding that arrangements had been made to facilitate the retrieval of remaining valuables and records through a formal application and verification process.

The FIA and ETPB reiterated that they are “fully cognizant that valuables and records may be lying inside” and reaffirmed their commitment to protecting federal assets and taking action against illegal occupation.

However, KCA Secretary Aftab Alam maintained that the association is in lawful possession of the building under a long-term lease issued by the KMC, valid until 2081, and that this fact had been formally conveyed to the ETPB before the operation. Despite this, he said, a joint raid was conducted on Dec 12 without regard to the subsisting lease or the KMC’s ownership of the property.

The KCA official traced the legal history of the property, stating that the land was originally leased by the KMC for 99 years in 1883, and was later purchased by the KCA Limited in 1936 through a registered conveyance deed, well before Partition. The transfer, he said, was duly entered in the official land records, and following the expiry of the original lease, the KMC renewed it for a further 99-year period from 1982 to 2081, under which the association continues to occupy the premises.

Rejecting the classification of the building as evacuee or trust property, the KCA argued that since the association was incorporated under the Indian Companies Act, 1913, and the property was transferred prior to 1947, it cannot be treated as abandoned or evacuee property under the Evacuee Trust Property Act, 1975.

Published in Dawn, December 16th, 2025