Court formally closes Chaudhry Sugar Mills case

LAHORE:

An accountability court on Monday approved the closure of a National Accountability Bureau inquiry against former prime minister Nawaz Sharif and Punjab Chief Minister Maryam Nawaz in the Chaudhry Sugar Mills case.

Accountability court judge Rana Muhammad Arif announced the decision while hearing an application filed by NAB seeking formal approval to terminate the inquiry.

In its plea, the anti-graft body informed the court that the investigation into allegations of corruption against Nawaz and Maryam had already been completed and no evidence supported the charges.

The bureau requested the court to grant final approval to close the inquiry in accordance with legal requirements, which the court accepted. During the proceedings, counsel for Maryam Nawaz presented arguments supporting the application.

The NAB prosecutor told the court that the investigation into the Chaudhry Sugar Mills case against both leaders had already concluded.

The case related to allegations of money laundering and assets beyond known sources of income through alleged irregular business transactions involving the sugar mill, in which Maryam Nawaz had previously been reported to be a major shareholder.

Interestingly, following the accountability order NAB appealed to the Federal Constitutional Court (FCC), requesting it to set aside the LHC's February 4, 2026 order.

NAB initiated an inquiry against Chaudhry Sugar Mills on November 14, 2018. During the investigation, Maryam Nawaz, who now serves as Punjab chief minister, was arrested on August 8, 2019, and placed on physical remand for 48 days.

She subsequently filed a post-arrest bail petition before the LHC. On October 31, 2019, the court granted her bail against two surety bonds of Rs10 million each and directed her to deposit Rs70 million and submit her passport with the registrar judicial.

NAB challenged the grant of bail before the Supreme Court, but the petition was dismissed on August 22, 2023, after it was withdrawn. Following amendments to the NAB law, the NAB investigation officer concluded that no case of corruption or corrupt practices was made out.

Based on this finding, the NAB Executive Board decided on April 3, 2024 to withdraw the proceedings under Section 31B(1) of the NAB Ordinance.

After the closure of the proceedings, Maryam filed a miscellaneous application before the LHC seeking the return of the Rs70 million deposited as part of her bail conditions.

The LHC on February 4, 2024 ruled that the case could only be formally closed with the accountability court's approval and directed the accountability court in Lahore to decide the matter within one month.

In its appeal, NAB argues that once the NAB chairman approved the inquiry's withdrawal, the high court had no authority to interpret the law in a way that imposed additional judicial approval.

It contends that when a case is withdrawn at the inquiry stage, the accountability court does not possess judicial authority over the matter. It says if the law does not require judicial approval for withdrawing an inquiry, such a requirement cannot be introduced through a court decision.

NAB further contends that the LHC issued its February 4 ruling without notifying the Attorney General's Office and that the court exceeded its jurisdiction by taking suo motu notice of the matter. It requests the FCC to declare the February 4 judgment null and void.

(WITH INPUT FROM JEHANZEB ABBASI FROM ISLAMABAD)