LAHORE -

Chief Justice of the Lahore High Court, Mr. Justice Umar Ata Bandial has ordered winding up of Innovative Investment Bank Ltd and appointed two joint official liquidators for answering the anxiety and concern of the investors who are without principal amount of their investment or any profit thereon for years, says a press release.

Securities Exchange Commission of Pakistan through Iftikhar-ud-Din Ahmad, advocate had approached the court on 8.10.2010 for winding up of the Bank due to its default. Its rehabilitation became impossible as its total liabilities were Rs 4.3 billion against assets of Rs 2.4 billion only. Therefore, its shortfall in assets rose to Rs 1.9 billion for which reason no serious and honest investor was willing to assume the responsibility for the Bank. During the course of hearing before the LHC, a number of investors sought revival of the Bank and in the process more than two years elapsed. However none of the parties was  interested in more than just real estate development of the properties owned by the bank and no solid proposal for settlement of the liabilities owed to the investors was submitted before LHC.

According to the petition, gross financial irregularities and violations of the rules and regulations were committed by the Bank management. The intention of the management was entirely dishonest as a very costly urban property in Lahore known as Caritas Town Land of the Bank measuring mare than 10 kanal was sold to a private party at Rs79.9 million where as its actual market value at the time was Rs1.8 billion. The Bank conducted business in a manner that was oppressive to its depositors, creditors, members and its minority shareholders, the petition maintains.

Chief Justice has appointed Waheed Raza (current provisional manager appointed by LHC earlier) and Nasir Askar, director SECP as joint official liquidators in order to commence repayments to the investors at the earliest possible time. The next hearing of the case is 18th June, 2013.