SHC quashes sugar inquiry commission report, declares it 'illegal'

In a surprising move, the Sindh High Court on Monday quashed the sugar inquiry commission's report declaring it illegal.

A two-judge SHC bench led by Justice KK Agha announced the judgment, stating that the notification regarding the constitution of sugar commission was illegal.

However, the decision will not prevent authorities including the National Accountability Bureau (NAB) and Federal Board of Revenue (FBR) from proceeding against sugar mill owners in accordance with law, and without any reference to or reliance on the report.

The verdict came on a petition filed by the Pakistan Sugar Mills Association (PSMA); the petitioner's counsels were Makhdoom Ali Khan and Abdul Sattar Pirzada.

Listing eight reasons for setting aside the report, the SHC stated that the sugar commission failed to follow the rules of the business. It further observed that the commission failed to gazette the notification in due time.

The court further observed that the commission had an 'incomplete composition', was biased and also denied the petitioners the opportunity of being heard.

The high court also pointed out the ‘prejudice’ of the commission report, stating that it violated Article 4, 10 (A) and 25 of the constitution, and also interfered in the relevant schemes of law.

The court has also stopped all federal government authorities from taking any decision in pursuance of the report.

SHC directed NAB to open an independent inquiry in the case under the NAB Ordinance without reference to the commission report.

It further directed the FBR to also conduct an independent inquiry under the relevant laws to determine whether any illegality under the taxation laws was committed by any of the petitioners without reference to the report.

Copy of the judgment will be sent to the chairmen of NAB and SECP, FIA DG, State Bank Governor and Sindh chief secretary for compliance.