ISLAMABAD: The Supreme Court Tuesday directed 222 loan defaulters to cough up Rs54 billion borrowed from banks or else their cases would be sent to the banking courts.The ruling from the top court came during the hearing of a suo motu case pertaining to the loan write-offs.A three-member bench of the apex court, headed by Chief Justice Mian Saqib Nisar, heard the case.Giving one more chance to the defaulters, the chief justice asked them to deposit 75 per cent principal amount with the court or else their cases will be sent to the banking courts for recovery of the full amount.The chief justice observed that the court will collect money from the defaulters with interest adding that if they could not recover the public money then they had no right to remain in the office.Last month, the apex court had served notices on 222 companies/individuals who’d got Rs54 billion loans written off.The court had ruled that as per report of the judicial commission, constituted by the apex court, action against 222 individuals/companies had been recommended owing to the fact that the loans were not written off in accordance with the law. The court then issued notices to all 222 individuals/companies asking them to ensure their presence on the next date of hearing.The judicial commission, headed by Justice (R) Jamshed Ali, was constituted on a letter written by the MQM founder Altaf Hussain seeking investigation against 222 individuals and companies for getting their loans written-off.In pursuance of the court order, the commission investigated over 700 cases in which Rs84 billion banks loans were written off from 1971 to 2009.In its Volume-13 report, the commission pointed out that apart from individuals, big businesses also got their loans written off.On Tuesday, the chief justice ruled that the defaulters should either pay 75 percent of the principal amount or face the banking courts.The chief justice said the apex court had provided another opportunity to the loan defaulters to clear their dues otherwise they would be facing the banking courts.“Possibly, we may fix the mark-up as well,” the CJP remarked.He further said the court might ask the Federal Investigation Agency (FIA) and National Accountability Bureau (NAB) to investigate the judicial commission’s findings.Barrister Zafarullah Khan, the petitioner, submitted that in several cases loans were taken without pledging any collateral to the banks.He alleged that Chaudhry Shujaat Hussain had got a loan using his political clout and links.He requested the court to send the case to the banking courts.At this, a lawyer representing a private company contended that if the case was referred to the NAB then criminal proceedings will be initiated.The chief justice observed that illegal loan write-off was a crime and if he’d admitted it [loan write-off] then he should pay the borrowed amount back to the bank.The counsel hurriedly replied that he was ready to settle the matter with the relevant bank.A counsel for a private bank pleaded the court to let them return the amount voluntarily.The chief justice replied that the court wanted the loan defaulters to return the borrowed money and if they did so then the court might think of waiving off the mark-up.“Whosoever wants to avail themselves of the option to return the written-off loan should submit in writing by Wednesday,” the chief justice remarked adding that no injustice would be done to anyone.He further said the people wanting the banking courts to deal with them will have to return the principle amount and their properties will also be attached, as the court had to collect every single penny of the nation. He said the recovered money would be used to pay off the country’s foreign debt. The proceedings were adjourned till Wednesday.
from The News International - Top Story
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