Waived off loans: CJP threatens to transfer case to NAB if money not returned

The hearing for the case has been adjourned until June 19

ISLAMABAD: The top court has sought concise statements from 222 individuals and companies which illegally got their loans written off between 1971 and 2009.

Hearing a suo case pertaining to illegal waivers of loans amounting to Rs54 billion, a three-judge Supreme Court bench, headed by Chief Justice of Pakistan (CJP) Mian Saqib Nisar, on Friday warned that if any company does not reply to the SC order, the court will conduct ex-parte proceedings.

Taking cognisance of a letter written by the Muttahida Qaumi Movement (MQM) founder Altaf Hussain in 2011, the apex court had formed a judicial commission, led by Justice (retd) Jamshed Ali, to probe the waivers.



The commission probed over 700 cases in which Rs84 billion worth of banks loans were written off from 1971 to 2009. In its report 13-volume report, the commission pointed out that apart from individuals, big businesses also got their loans written off.

It said the number of politicians availing loan waivers may be much higher than the number appearing in written-off loans figures. It also claimed that influential groups did exercise pressure on banks, but there was no direct evidence in this regard as the evidence may have been destroyed at the initial stages.

The report said he bankers verbally admitted that influential groups interfered with the processes at the sanctioning stage as well as the write-off stage. It also revealed that concessions were granted under circular 29/2002 in 222 cases.

During the hearing on Friday, the CJP pointed out that the companies which ate through Rs54 billion from the public exchequer are still functioning.  He warned that their cases will be referred to the National Accountability Bureau (NAB) if the money is not returned to the national exchequer.



“Properties of loan defaulters will also be confiscated,” said Justice Nisar as he announced hearings of the case would be held on a daily basis. He also asked the SC office to send notices through the Securities and Exchange Commission of Pakistan (SECP).

“The matter has been communicated via public notice and if someone still wants to escape, he may escape at his own risk. Companies that do not show up would see one-sided action taken against them,” he said.

During the hearing, counsels for some companies said their cases were very different nature. The chief justice said that if it appeared to be so during the hearing, then their cases will be heard separately, but the case will not be prolonged. The hearing for the case was later adjourned till June 19.