Fake accounts case: SC orders transfer of Anwar, others

LAHORE: The Supreme Court on Saturday ordered the transfer of Omni Group Chairman, Anwar Majeed, his son Abdul Ghani Majeed and former chairman of Pakistan Stock Exchange Hussain Lawai, to Islamabad/Rawalpindi for effective investigation from them in fake bank accounts case.

The bench observed that these were very influential persons and would frustrate investigations, if it was held in Karachi.

The bench ordered to transfer Anwar Majeed to Pakistan Institute of Medical Sciences (PIMS), Islamabad, and Abdul Ghani Majeed and Hussain Lawai to Adiala Jail, Rawalpindi, with a direction to Joint Investigation Team (JIT) to investigate all three accused and submit its report within 10 days.

The bench also directed National Bank of Pakistan, Silk Bank, Summit Bank and Sindh Bank to finalise an intra-bank agreement for the recovery of their loan from Omni Group in the light of offer made by the group and submit the same to the bench.

The two-member bench headed by Chief Justice Mian Saqib Nisar passed the orders while hearing the matter at the Supreme Court Lahore Registry.

At the outset of proceedings, senior officials of the concerned banks, Nimr Majeed and others appeared before the bench.

A counsel on behalf of the Omni Group submitted that total payable loan amounted to Rs 12.730 billion. He submitted that National Bank's loan was estimated about Rs 4.98 billion, Silk Bank Rs 1.2 billion, Summit Bank Rs 1.8 billion and Sindh Bank Rs 4.6 billion.

He submitted that three banks had accepted the offer for payment of loan in exchange of properties. However, National bank is still reluctant, he added. He submitted that the group was ready to return the National Bank loan in instalments.

At this, the chief justice observed that the court did not have any objection to the settlement, if it was acceptable to the National Bank. However, the court will not ask the bank to accept the deal, he added.

To which, National Bank's counsel Naeem Bukhari submitted that the group must make all payments in cash as they had stolen sugar stock pledged with the bank. He refused to accept properties offered for payment of loan.

A National Bank representative also insisted on payment of loan in cash with a demand for strict adherence to time line offered by the group.

At this, the chief justice remarked that the banks could get a criminal case registered against the group management. If the conditions are not fulfilled then the proceedings will start, he added.

The representative further submitted that the properties offered by the Omni Group should be pledged to the bank as mortgage and the sale proceed should take place with the permission of the bank.

The National Bank will receive all cash obtained from the sale and would distribute among the banks as per loan percentage, he proposed, adding that the bank would act as security agent and lead bank in the process.

To which, the chief justice observed that all banks should finalise an intra bank agreement for recovery of their loans and submit the same, adding that the National Bank would be the lead bank.

In response to a court query regarding element of fraud in the deal offered, Federal Investigation Agency Director General Bashir Memon submitted that the prices of the offered properties were inflated and a re-evaluation was required.

On it, the chief justice ordered all concerned bank heads to submit their evaluation report regarding properties on affidavit after their re-evaluation.

The director general further complained that Anwar Majeed was not cooperating in investigation regarding fake bank accounts.

At this, the chief justice ordered transfer of Anwar Majeed to PIMS Islamabad and Abdul Ghani and Hussain Lawai to Adiala jail for investigation while adjourning the further hearing till December 5.

Anwar, a close aide to former president Asif Ali Zardari, and his son were arrested and booked by the Federal Investigation Agency (FIA) in August, in a case pertaining to alleged money laundering of billions of rupees through 29 `fake' bank accounts.

The agency had detained former chairman of the Pakistan Stock Exchange Hussain Lawai and banker Taha Raza, and booked them for allegedly facilitating the opening of the 29 `fake' accounts through which suspicious transactions were made to different companies, including M/s Zardari Group.

The banks, including the National Bank of Pakistan, Silk Bank Private Limited and others, have filed criminal applications under Section 201(a) of the Financial Institutions (Recovery of Finances) Ordinance, 2001, seeking action against the CEOs/directors of sugar mills that are allegedly owned by the Omni Group, accusing them of pilferage of the sugar stocks, pledged against the bank loans acquired by them.