AGP urges SC to set guidelines about powers of regulatory bodies

Supreme Court hears federation’s appeal against IHC verdict on powers of CCP

ISLAMABAD - Attorney General for Pakistan (AGP) Khalid Jawed Khan on Wednesday requested the Supreme Court of Pakistan to set guidelines about the powers of the regulatory bodies. 

The AGP stated this while appearing before a three-member bench of the apex court, headed by Justice Umar Ata Bandial that heard the federation’s appeal against the Islamabad High Court (IHC) verdict on the powers of the Competition Commission of Pakistan (CCP). 

The apex court on November 22, 2021 had suspended the Islamabad High Court (IHC) judgment restraining the CCP inquiry against the ghee and oil mills. Justice Bandial directed the commission to resume inquiry against the mills’ owners, but issue fresh notice to Dalda Foods Limited and tell the mill why an inquiry initiated against it. 

The bench also issued notice to the AGP Khalid Jawed Khan and directed him to file the written submission before the next date. The court also issued notice to the CCP and the respondents. 

In his response, the AGP prayed to the court to set the guidelines on the regulatory bodies power, which protected the rights of company owners and the consumers. 

He said that in the guidelines that regulators powers and courts’ jurisdiction be delineated clearly. He said that due to the litigation on the regulators’ decision affect the revenue. 

The IHC in October last year had set aside CCP’s letters to Dalda Foods Limited seeking information regarding excessive pricing of vanaspati ghee. 

Federal Ministry of Industries and Production on June 8, 2020, wrote letter to the CCP that despite reduction in palm oil prices, the retail prices of vegetable ghee in the market have not shown a declining trend and requested that the CCP to intervene in such situation under Sections 3(3)(a) and 37 of the Competition Act, 2010. 

Later, the case was adjourned till the first week of March. 

According to the IHC judgment, many mills owners submitted the information to the CCP, which after preliminary fact-finding exercise, ordered a formal enquiry under Section 37(1) in price increase of ghee/cooking oil to determine prima facie contravention of Sections 3 and 4 of the Act. 

The IHC judgment stated that the impugned enquiry has been ordered by the CCP for a collateral purpose without satisfying the requirements of Section 37 and the enquiry order has been passed in breach of provisions of the Act, and is therefore void.

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