Sugar turns sour for the Sharifs

The Supreme Court on Thursday ordered to bring the crushing of sugar in three mills of the Sharif family to a halt and remanded the case back to Lahore High Court with directives to look into the issue of relocation of the mills. Prime Minister Nawaz Sharif, Punjab Chief Minister Shahbaz Sharif and their relatives own three sugar mills - including Ittifaq Sugar Mills, Haseeb Waqas Sugar Mills and Chaudhry Sugar Mills.
On October 10, last year, a single-member bench of the Justice Ayesha A Malik of Lahore High Court had declared relocation of Chaudhry Sugar Mills, Ittifaq Sugar Mills, Haseeb Waqas Sugar Mills, Abdullah (Yousaf) Sugar Mills and Abdullah Sugar Mills to other districts illegal. Haseeb Waqas Sugar Mills and other sugar mills filed intra court appeals, to which a division bench of the Lahore High Court, led by Justice Abid Aziz Sheikh, allowed crushing in three mills without suspending the single bench''s decision in the matter. Pakistan Tehreek-e-Insaf (PTI) Secretary General Jahangir Khan Tareen, the owner of JDW Sugar Mills, and the owners of Indus Sugar Mills and RYK Sugar Mills, among others, had challenged the Lahore High Court''s verdict before the Supreme Court on December 6, 2006.
On Thursday, after hearing the arguments of counsel for Ittifaq Sugar Mills and others mills, Salman Akram Raja and JWD Counsel Atizaz Ahsan, the apex court''s three-member bench led by Chief Justice Mian Saqib Nisar said in its order, "We convert these petitions into appeals. Lahore High Court has not taken into consideration fundamental document and has passed non-speaking and mechanical orders those are set aside. On account of urgency, the stay application will be fixed before a division bench, preferably headed by the Chief Justice of the High Court on February 16 to decide the stay orders. It is very much clear that crushing of the sugar mills would remain suspended till final adjudication of the matter in the Lahore High Court and any violation of the order will not be tolerated at all."
During the course of proceedings, Chief Justice Mian Saqib Nisar asked Salman Akram Raja about the shareholders of Ittifaq Sugar Mills. "Whether Hamza Shahbaz and his family members have shares in the Ittifaq Sugar Mills?" Chief Justice Mian Saqib Nisar consistently asked the counsel for Ittifaq Sugar Mills not to go on the merit of the case; otherwise it would be questioned if Chief Minister Punjab approved the summary to set up mills as his family members were involved in it. Akram said that Hamza Shahbaz and his family do not have shares in the mill.
Citing a notification of the Punjab government issued on December 4, 2015 under No. AEA-III 3-5/2011 (Vol-VIII) for relocation of a functional sugar mill in public interest, Chief Justice Mian Saqib Nisar questioned whether the notification was amended to benefit the family members, to which Salman Akram Raja termed it ''mere a blame'', saying the amendment in the notification was made in accordance with law.
A member of the bench, Justice Umer Atta Bandial, observed the matter in hand is the case of public interest and the chief executive of the province has direct nexus with the notification. Appearing on behalf of the JWD Sugar Mills, Aitzaz Ahsan pleaded that the LHC had given interim relief to the Ittifaq Mills, while the case is still pending. He argued that by taking the benefit of the interim order of the Lahore High Court, Ittifaq Sugar Mills has started crushing.
Ahsan alleged that Ittifaq Sugar Mills has been set up in the garb of power plant, adding that the apex court had ruled that sugar mills could not be set up in cotton harvesting areas. He contended that Ittifaq Sugar Mills was not functional and its shifting from northern to southern Punjab is the violation of court''s order and law, saying only the functional sugar mills could be shifted in accordance with the notification of the government of Punjab.
Chief Justice Mian Saqib Nisar asked him to confine his arguments only to the Ittifaq Mills. Aitzaz Ahsan replied that the court is being misled regarding Ittifaq Sugar Mills. Addressing Aitzaz Ahsan, Chief Justice said whether he wanted to say that the sugar mill was established at the site of a power plant and its shifting was therefore illegal.
Ahsan urged the bench to issue directives to stop crushing in the Ittifaq Sugar Mills and also sought court''s direction to the LHC to decide the matter in one month. However, the bench observed that it cannot interfere in the interim order of the LHC in the current matter.
Chief Justice Mian Saqib Nisar observed that it seems that all the fundamental documents were not presented before the LHC; to which Aitzaz Ahsan submitted that Ittifaq Sugar Mill was shifted from northern Punjab to southern Punjab in violation of law, adding interim order was passed nine times, but those were violated. He said that the local commissioner in his report also declared this shifting illegal.
Atizaz Ahsan further said that in 2006 a notification of the Punjab government banned setting up of new sugar mills and their shifting in the province, so the sugar mills set up illegally should immediately be directed to suspend their functions. He repeatedly submitted that the ''ruler'' of Punjab amended the notification to benefit the Sharif family.
Salman Akram Raja argued that Ittefaq Sugar Mill had not violated the court''s orders, adding that the 2006 notification was amended by a committee headed by Punjab Chief Minister in 2015. He submitted that still there is a ban on setting up new sugar mills, but only shifting of mill was allowed under certain conditions.
Salman Akram Raja argued that the order to suspend the crushing would render thousands of labourers jobless and Rs 380 million investment would go waste. He further said the that closure of his client''s mill means the allied power plant would also be closed. Responding to the court''s query, Salman Akram Raja informed that Tariq Shafi, Javed Shafi and his family are the shareholders of the Ittefaq Sugar Mills.
Chief Justice Mian Saqib Nisar told the counsel that he can submit any proposal in the current matter, saying after hearing the matter the court will not accept any proposal to resolve the issue. To which, Salman Akram Raja said that after completion of his arguments in the matter he will seek instructions from his clients. Chief Justice Mian Saqib Nisar observed his client should be present during the course of hearing of the matter in the court. Later, the bench remanded the matter to the Lahore High Court for its adjudication.