ISLAMABAD - The Islamabad High Court yesterday issued notices to the respondents on an application of Mian Umar Mansha for dismissal of a petition containing money-laundering charges against Nishat Group.
A division bench of the IHC, comprising Justice Shaukat Aziz Siddiqui and Justice Mohsin Akhtar Kayani, issued the notices to Pakistan Welfare Party (PWP) and others on an application moved by Umar Mansha, son of business tycoon Mian Mansha, who approached the court through former attorney general of Pakistan Salman Aslam Butt
The application was moved in a matter in which PWP had filed a writ petition, seeking the court’s direction to the relevant authorities to investigate the alleged money-laundering charges against Nishat Group for the purchase of St James Hotel in London.
Umar Mansha, in his application, had said that the PWP had no locus standi or it was not an aggrieved party, so it had no right to file such a petition. Federal Board of Revenue (FBR), in their reply to the main writ petition of the PWP, had stated that they were investigating the charges and had written to the UK authorities to let them know about the trails of money. They had further stated that they were waiting for reply from London. The IHC bench directed other respondents to also submit reply to the main writ petition.
The PWP, through its chairman Muhammad Farooq Sulehria, had nominated National Accountability Bureau (NAB), Federal Board of Revenue (FBR), Federal Investigation Agency (FIA), State Bank of Pakistan (SBP), Mian Muhammad Mansha, his sons, Mian Umar Mansha and Mian Hassan Mansha, and daughter Aimal Raza Manasha as respondents.
The petitioner, through its counsel Shoaib Razzaq advocate, contended that Nishat Group was one of the largest business groups with assets over Rs 300 billion in Pakistan. The internationally acclaimed St James Hotel in London was purchased by Mansha’s family in 2010 for 60 million pounds equivalent to Rs 9 billion.
The petitioner further said that as per a news statement on behalf of Nishat Group/owner of St James Hotel, London, the money was lawfully generated in Pakistan and transferred abroad for the purchase of the hotel after deduction of due taxes.
He added, on July 28, 2015, the Senate Committee on Finance, Revenue and Economic Affairs raised the issue of payment for the purchase of the hotel and enquired through SBP about the prevailing regulations and limitation of foreign remittance for investment outside the country.
He continued that SBP, in its letter dated August 24, 2015, to the Senate Committee, stated that the request for investment abroad by Pakistani persons is considered in the light of relevant laws and policies. However, any foreign investment of US $ 5 million or above requires approval of the Economic Coordination Committee. The counsel stated that the SBP record, submitted to the Senate committee, reveals that no permission was sought from the bank.
He said the illegal activity of transferring millions of dollars outside the country without seeking permission from the SBP as required by the laws and regulations has fallen on deaf ears of NAB.
He further argued the SBP, as mandated by its 1956 Act to regulate the monetary system of Pakistan and authorised by the NAB Ordinance 199, Section 20, has failed to comply with the guidelines and to take immediate and prompt action against the transaction.
He added the SBP, as a regulator, had failed to take necessary action against the transfer of foreign reserves outside the country, but also did not refer the matter to the investigation agency to investigate this illegal and unusual activity.
The petitioner prayed to the court to instruct the NAB to take cognizance of the matter and initiate investigation, besides directing the SBP to refer the matter to FIA to probe the matter against the transfer of money. The petitioner further sought direction for NAB and FIA to proceed further against Nishat Group and Mansha’s family in accordance with sections 3 and 4 of the Anti- Money laundering Act, 2010. The PWP also sought direction to FBR to proceed further against Nishat Group over tax evasion in Pakistan and the UK and non-compliance with tax conventions and treaties between the two countries.
The next hearing of the case will be held on April 18.