Ittefaq foundries case: SC reserves judgment over release of ‘guarantor’

The apex court has taken up the case after the passage of 15 years

ISLAMABAD: The Supreme Court on Monday reserved judgment over National Accountability Bureau’s (NAB) 15 year old plea against the Lahore High Court’s (LHC) order to release ‘guarantor’ in Rs1.06 billion Ittefaq foundries loan scam against Sharif family.

The three judge bench of the apex court, headed by Justice Anwar Zaheer Jamali has also directed the NAB to submit the copy of accountability court’s judgment regarding the acquittal of Sharif family in the Ittefaq foundries case and a copy of its petition, filed in the Islamabad High Court against the accountability court’s order.

On February 14, 2000, NAB had filed a reference against owners of Ittefaq foundries Mian Sharif, incumbent Prime Minister Nawaz Sharif, incumbent chief minister Punjab Shahbaz Sharif and other family members for not paying back Rs1.06 billion loan to the National Bank.

According to the NAB’s reference, on December 10, 1999, Zonal Chief and Manager National Bank Wapda House Lahore addressed a complaint to the chairman NAB against Sharif family. He had further stated that since 1994, the company was in default to the NBP to the tune of 1.06 billion (Rs1,063,162,937). The complainant stated that the incumbent prime minister on June 11, 1998, announced to hand over his assets to the creditor Banks to realise the loans of Sharif Family by selling them.

Sharif family had also admitted their liability of Rs728,561,003 against the claim of the bank of Rs1,063,162,937. However, the coup occurred on October 12, 1999, and Sharif went to exile.

Later on, NAB had arrested Ittefaq foundries director Dr Mukhtar, who had been named as a guarantor to return the loan. His wife had challenged his arrest in the LHC. The high court’s five judge bench with majority had directed the NAB to release the guarantor. Later on, the NAB had approached the SC.

After the passage 15 year old, the bench on Monday took up the NAB’s appeal.

During the hearing, Ibrahim Satti counsel for NAB appearing before the bench stated that the high court’s orders are obstructing the NAB’s investigation in corruption cases. He requested the bench to set aside the LHC’s verdict regarding the release of guarantor in this case. The counsel contended that now the apex court has also declared that case could be registered against guarantor of loan defaulter as well.