SHC declares Sugar Inquiry Commission report as null and void, orders fresh probe

(Karachi) The Sindh High Court (SHC) nullified the sugar inquiry commission and its report and ordered authorities to conduct a fair inquiry into the matter, media reported on Monday.

SHC division bench, comprising Justice KK Agha and Justice Omar Sial, announced the reserved verdict on a petition filed by the Pakistan Sugar Mills Association (PSMA) against an inquiry commission formed by the government to probe into a sugar crisis that hit the country earlier this year.

The SHC declared report of Sugar Inquiry Commission null and void and also ordered National Accountability Bureau (NAB), Federal Board of Revenue (FBR), Federal Investigation Agency (FIA) to carry out an independent inquiry as per law.

“If any government official has misused his powers, it should be investigated,” said the SHC. “FIA should also ignore the sugar inquiry commission report and re-investigate [the increase in prices],” directed the court in the verdict. It also issued the same orders to the Securities & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP).

Earlier, the Sugar Inquiry Commission report held Omni Group, Murad Ali Shah, Moonis Elahi, Jahangir Tareen, Salman Shehbaz and others responsible for their involvement in the sugar scam.

The report transpired that farmers faced losses at the hands of businessmen and middleman. It stated that farmers were not given their due share while sugar was sold at higher rates.

The findings revealed that certain sugar mills used informal receipts. The mill owners also showed the price of production to be more than the support price which meant that farmers earned less, the report maintained.

The report stated that sugar mill owners carried out informal banking, which is an unregulated procedure and resulting in losses to the farmers. The inquiry commission report also revealed that sugar mill owners are also involved in accounting fraud.