FIA issued notice over currency market raid

Bench told no intimation given to business owners prior to closure

PESHAWAR: The Peshawar High Court issued notices on Friday to the secretary of Federal Ministry of Interior, Federal Investigation Agency director general and State Bank of Pakistan after a currency association challenged the closure of its shops. Currency Sarafa Association also named the Khyber-Pakhtunkhwa chief secretary and Peshawar deputy commissioner as respondents, who were also issued notices.

Currency Sarafa Association General Secretary Shakeel Ahmad filed a petition through Advocate Abdul Sattar Khan. The advocate told the bench of Justice Irshad Qaiser and Justice Syed Afsar Shah the petitioner was dealing in Afghan currency for decades.

Abdul Sattar told the bench the currency dealers had permission from State Bank of Pakistan, but FIA along with a team of district government officials raided the money exchange outlets in Sarafa Bazaar and sealed all of them. The lawyer added when the association members asked State Bank for permission to deal in Afghan currency, the latter told them Afghani does not come under foreign currency and no permission is required to deal in that.

Trade rights

The division bench demanded an explanation for the closure of the shops for which, Abdul Sattar, said no reason was given. However, Justice Shah said the outlets were sealed for allegedly running illegal business in the name of currency exchanges.

Abdul Sattar argued the FIA had nothing to do with currency business and under the Foreign Currency Exchange Regulation Act, 1947, only the State Bank of Pakistan has the authority to conduct raids. He told the bench the shops were closed some years back by the deputy commissioner but were reopened after the currency dealers got an affidavit from the DC. Abdul Sattar added the DC had sealed them this time, therefore they took the issue to the court.

He said a show-cause notice should have been issued instead of a raid and closure of shops. Abdul Sattar said sealing the shops without any notice was a violation of Article 18 of the Constitution of Pakistan that says every citizen has the right to conduct lawful trade or business. Therefore, the lawyer requested interim relief.

Published in The Express Tribune, January 30^th,  2016.