ISLAMABAD - The Supreme Court on Thursday, with minor amendments, approved the draft of new circular prepared to scrutinise all the written-off loan cases from 1971 to onwards. The counsels for State Bank of Pakistan, commercial banks and Banking Council, parties in the case, who were mandated to prepare the draft of circular, submitted it before the bench. The bench directed the SBP to issue the circular and submit its copy at the apex court. A representative of the SBP assured that the circular would be issued on Friday. A three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Muhammad Sair Ali and Justice Ghulam Rabbani was hearing a suo motu case of the written-off loans. The State Bank has waived off loans worth Rs256 billion from 1971 to 2009. According to the draft circular, the banks/DFIs are directed to immediately submit the entire record of all the written-off, remitted, reversed and or waived off loans, advances or finance of Rs2.5 million and above from 1971 to 1991, and Rs25 million and above from 1992 to onwards, to the commission constituted by the Supreme Court for its examination and consideration as to whether they were allowed without validity and justification, or because of political reason or consideration other than law or bonafide business considerations. All the banks/DFI are also directed to ensure the compliance of the instructions; provide all assistance and cooperation in the work of the commission and comply with any general or special instruction of the commission. The chief justice said that the commission would have powers akin to Inquiry Commission, set up under the Supreme Court Rules. The case was adjourned till June 3 (today). Chief Justice Iftikhar Muhammad Chaudhry, during hearing of the written-off loans case, said the process of giving or writing off loans should be transparent.Justice Iftikhar said that Section 25 AA of the Banking Ordinance had absolutely been ignored. He ordered that the commission should start work immediately. Sardar Muhammad Raza Khan has been appointed as the head of the commission.