Suo motu case: SC to determine legality of law on loan waivers

State Bank’s Circular 29 to be reviewed.

ISLAMABAD:

The Supreme Court will first determine the legality of the law on loan write-off before establishing if the State Bank’s circulars are in conflict with the constitution, Chief Justice Iftikhar Muhammad Chaudhry observed on Monday during the course of hearing of a suo motu case on loan waivers amounting to Rs54 billion.

The court would like to ensure that loan waivers are not granted on political grounds, the chief justice remarked. The commission proposed for overseeing the recovery of loans should review Circular 29 and its implementation, he observed. Amicus curiae, Khawaja Harris submitted that the court should first review the constitutional status of circular 29 of the State Bank on loan write-off which has been severely misused.

Additional Attorney General KK Agha proposed that an expert in white-collar crime be included in the commission to investigate if the waiver was justified. The court appreciated his suggestion and observed that the commission chief may nominate anyone for monitoring its progress.

Attorney General Maulvi Anwarul Haq suggested that the commission submit its report in 90 days instead of six months.

Agha informed the three-member bench headed by the chief justice that the recommendations for constituting the commission have been sent to the government but it has yet to respond. The court will not interfere in the commission’s affairs, the chief justice remarked. Justice Sair Ali said the issue should be taken up seriously since it involves thousands of people.  The court adjourned the hearing till May 12.



Published in The Express Tribune, April 26^th, 2011.