LAHORE, Sept 1 A Lahore High Court division bench on Tuesday directed the Federal Investigation Agency (FIA) and Zarco Exchange to decide on a schedule for payments to the affectees within a week failing which the court would give its decision.

Hearing the suo motu notice against Zarco Exchange, the division bench, comprising Chief Justice Khwaja Muhammad Sharif and Justice Ijaz Ahmed Chaudhry, also observed that FIA and State Bank did not take action against Zarco when it had been allegedly transferring the money abroad illegally for the last three years.

FIA director-general Tariq Masood Khosa submitted that Zarco had been working since 2006. The company continued to transfer the money abroad through its branch in the UK. He said Zarco had transferred Rs67 billion abroad illegally. Its affectees included 35 people and 59 agents.

The Zarco scam was unearthed after registration of an FIR in February this year.

He requested the court to constitute a commission headed by an LHC judge and comprising the representatives of State Bank, Security and Exchange Commission of Pakistan and FIA to probe the Zarco scam.

Zarco counsel Syed Ali Zafar requested the court to direct the FIA to return the computer server and unseal their office and they would pay the outstanding amount within three months. The FIA DG, however, opposed the return of the computer server contending that it was helping in detection of irregularities committed by the company.

The bench dismissed the application of Zarco director Zameer Haider for return of company's computer and server and directed the FIA to register a criminal case against him for deceiving the court by submitting a false power of attorney on being informed that he was abroad.

The chief justice had taken a suo motu notice on various applications filed by the affectees of Zarco who had sent money abroad through the company but the payment had not been made so far.

The division bench adjourned the hearing of the case till Sept 8.