Industrialist arrested for selling electricity

Goharullah was generating, distributing power without license

HYDERABAD:

Amid infighting between two groups of the Hyderabad Chamber of Commerce and Industry (HCCI), the Federal Investigation Agency (FIA) has arrested the head of one group under charges of Rs673.3 million worth of corruption.

Per FIA, the former president of HCCI Seth Goharullah, who heads the Fateh Textile Mills Limited (FTML), was generating and supplying electricity without approval by the National Electric Power Regulatory Authority (NEPRA).

A No Objection Certificate (NOC), purportedly issued by Hyderabad Electric Supply Company (HESCO) to FTML in 2011, has also turned out to be a fake during the course of the FIA's probe. "A loss amounting to Rs673.37 million has been caused to the government exchequer due to the above mentioned illegal act of FTML from 2015 to 2024," reads the FIR lodged by Sub-Inspector Masroor Baloch of FIA Crime Circle Hyderabad.

According to him, electricity was being sold to six industrial consumers of HESCO. The buyers included Barkat Cotton Mills, Barkat Power Limited, Fateh Textile Spinning Mill, Fateh Spinning Mills, Fateh Textile Mills and the Boulevard Mall, which is Hyderabad's only shopping mall. Interestingly, all these businesses are associated with FTML.

The FIA found four generators of different capacity installed in the mills which were being fuelled by natural gas and diesel. Upon inquiry, Sui Southern Gas Company Limited (SSGCL) apprised the FIA that a gas connection for heating water and steam purposes in the textile industry was given to FTML. The SSGCL also clarified that FTML was not a captive power plant customer and, therefore, gas was being used illegally for power generation.

The FTML also produced a NOC before the investigators claiming that former Chief Executive Officer of HESCO Muzaffar Abbassi had issued it on September 8, 2011. "By approval of the competent authority and BoD of HESCO, we have no objection that the FTML supply their electricity to their own units viz spinning units, weaving units, textile unit, sister concerns and associated companies."

FIA discovered on verification that the NOC from HESCO was a fake. "The outward number affixed on the same NOC pertains to an appreciation letter issued to Executive Director CSSR Dr Asad." Separately, the former CEO Abbasi also denied that he had issued any power generation NOC to the FTML.

In a letter to the FIA a Sub Divisional Officer of HESCO, Muhammad Zuhaib, alleged that two restaurants, Mumtaz Shinwari and Special Shinwari which are situated in premises of the mills, were also being illegally supplied electricity. According to the SDO, both these restaurants are classified as unregistered consumers of HESCO.

"... due to this illegal supply of electricity approximately Rs50 million to Rs60 million loss on a monthly basis is being caused to the government exchequer," the SDO claimed. Meanwhile, a team of the FIA arrested Goharullah from his residence late on Monday night. He was produced before a judicial magistrate who granted his five-day physical remand to HESCO.

A Line Superintendent of HESCO, Asad Abro, who was also arrested in the same case for abetting the illegal power generation and supply, has also been arrested and his remand has been secured as well. The FIR has been lodged under sections 409, 419, 420, 468, 471, 109 and 34 of Pakistan Penal Code (PPC) read with section 5(2) of Prevention of Corruption Act, 1947.

Coal controversy

Goharullah and his brother have stirred many controversies to their credit like allegedly unlawful sale of coal extracted from a coal mine in Jamshoro; the alleged fraud by the Boulevard Mall with the investors; dispute over license of HCCI; and the land dispute of Rajputana hospital. The coal mine was given to Gohrullah under a contract to generate electricity by setting up a power plant in Jamshoro. The coal, instead, was sold in the open market.

The mall sold files of investment to citizens against monthly profit. The investors, which included pensioners, complain that the due profits were not paid. Apart from this, two groups of traders are at loggerheads concerning licensing for the HCCI. After the NOC of the Goharullah group was cancelled, the Adeel Siddiqui led group was issued an NOC for HCCI. In May this year Goharullah group tried to take control of HCCI's office, claiming that they had won the case from Islamabad High Court regarding restoration of their NOC, stirring a clash occurred between the traders.