ISLAMABAD - The Islamabad High Court will resume today the hearing of an application by Mian Umer Mansha for dismissal of a petition seeking court’s directions to authorities to investigate the alleged money laundering charges against Nishat group.
Previously, a division bench of IHC comprising Justice Shaukat Aziz Siddiqui and Justice Mohsin Akhtar Kayani had issued notices to the parties including Pakistan Welfare Party (PWP) on an application moved by Umer Mansha son of the business tycoon Mian Mansha who approached the court through former attorney general of Pakistan Salman Aslam Butt.
The application was moved in a matter wherein PWP had filed a writ petition requesting the court to direct 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 said the PWP had no locus standi or it was not an aggrieved party and hence it had no right to file such petition.
In the main writ petition, wherein PWP has sought investigation into the money laundering allegations, Federal Board of Revenue (FBR) submitted its reply. The FBR submitted before the court that it was investigating the charges and had written to London authorities to let them know about the trails of money that purchased St James Hotel. The FBR in its reply further told that they were waiting for reply from London.
The IHC bench directed other respondents to also submit reply in the main writ petition.
Petitioner PWP through its chairman Muhammad Farooq Sulehria has 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 Umer Mansha and Mian Hassan Mansha and Mian Mansha’s daughter Mrs Aimal Raza Mansha as respondents.
The petitioner through its counsel advocate Shoaib Razzaq contended that Nishat group was one of the largest business groups that had assets over Rs 300 billion in Pakistan. The internationally acclaimed St James Hotel Ltd London was acquired by Mansha’s family in 2010 for a total consideration of 60 million British pounds equivalent to 9 billion Pakistani rupees.
Petitioner further adopted 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 after the due taxes were deducted, the money was transferred abroad for the purchase of the hotel.”
He added that the Senate Committee on Finance, Revenue and Economic Affairs on July 28, 2015 had raised the issue of foreign remittance for the purchase of said hotel and inquired through SBP about the prevailing regulations and limitations of foreign remittance for investment outside the country.
He continued that SBP in its letter dated August 24, 2015 to the Senate committee had stated that the request for the investment abroad by Pakistani person was processed and considered in terms of applicable laws and policies.
However, any investment abroad of US $ 5 million or above required approval of Economic Coordination Committee.
The counsel stated that as per SBP record that it submitted to Senate committee revealed that no permission was sought from the State 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 had fallen deaf ears on the NAB.
He further argued that the SBP as mandated by its 1956 Act, to regulate the monetary system of Pakistan and authorised by the NAB Ordinance, section 20 to take immediate and prompt actions against unusual transactions, had failed to comply with aforementioned guidelines.
He added that the SBP had not only failed as a regulator to take necessary action against the transfer of foreign reserves outside the country, but also failed to refer the matter to investigation agency to investigate this illegal and unusual activity.
Therefore, the petitioner prayed to the court, the NAB may be instructed to take cognisance of the matter and initiate investigations. The SBP may be given directions to refer the matter to NAB and FIA to investigate transfer of money. The NAB and FIA may be directed to proceed further against the Nishat group and Mansha’s family in accordance with section 3 and 4 of the Anti- Money Laundering Act 2010. The FBR may be directed to proceed further against Nishat group for tax evasion and any incidental proceedings that could be initiated against the Nishat group in Pakistan as well in the UK for failing to comply with tax convention and treaties between the two countries, petitioner prayed.