LAHORE - About two dozen cases of wilful loan default, misappropriation of funds, embezzlement, misuse of authority and corrupt practices involving a total of Rs 7,123.62 million could not be finalised by the National Accountability Bureau Lahore because the superior courts issued stay orders or quashed notices served on various industrial units and their high-ups.

Official sources told The Nation that the NAB is moving the courts to have the stay orders vacated to be able to start proceedings against the accused.

At present, the NAB Lahore is conducting inquiries into 166 cases and investigations of another 138. As many as 72 inquiries and 37 investigations have been completed during the current year. The anti-graft watchdog filed a total of 38 references during the first eight months of the current calendar.

The sources said the references filed involved Rs 5,508 million. Inquiries are being carried out in matters involving Rs 19,802 million and investigations in amounts of Rs 16,833 million.

A total of 80 arrests were made during the period under review. A direct recovery of Rs 705.7 million was made during the first eight months. Indirect recoveries stand at Rs 137.39 million.

Those against whom wilful loan default inquiries have been stayed are: M/s Khurshid Spinning Mills Ltd Faisalabad (Rs 163.419 million); Dawood Spinning Mills, Lahore (Rs 321.033 million); A.K Exports Faisalabad (Rs 160 million); Anmol Textile Mills Lahore (Rs 376.67 million); CECO Tyres Limited Gujrat (Rs 269 million); Zephyr Textile Ltd Lahore (Rs 524 million); HATCO Pvt Ltd Lahore (Rs 508 million); Tanveer Spinning Mills Lahore (Rs 159 million); Jeea Textile Faisalabad (Rs 102 million); T&N Pakistan Faisalabad (Rs 1,567 million); Divine Developers Lahore (Rs 345 million); Ahmed Waheed Malik and others (Rs 209 million); Aehsun Humayun Sheikh and others (Rs 65 million); Kashmir Textile Mills Faisalabad (Rs 93 million); Delta Construction Lahore (Rs 143 million); Mian Ayaz Anwar and others (Rs 71 million).

Others against whom investigations, embezzlements, misuse of authority or corrupt practices have been stayed are: Abid Farooq of Ali Akbar Spinning Mills (Rs 146 million); Khalid Mujeeb Pervaiz Khan of Unique Developers (Rs 480 million); Muhammad Ashfaq of Hi-Stitch Fashion Embroidery (Rs 33 million); Ahmed Lateef and Mehvish Hadi of Gas Natural (Rs 1,186 million); Ali Ejaz, Ghulam Mustafa and Asmatullah of Al Hadi Rice Mills Sialkot (Rs 107 million).

REFERENCE BEING PREPARED: The NAB is preparing a reference against Hammad Arshad (owner of Globaco Pvt Ltd), who along with some others, took Rs 15.46 billion from some 10,421 people for plots in DHA City project but neither gave them plots nor returned the money.

Complaints were received on the subject from general public and DHA Lahore against Globaco (Pvt) Ltd, now Orange Holdings (Pvt) Ltd on the alleged charges of corruption and corrupt practices under NAO 1999.

On November 26, 2009, an agreement between Defence Housing Authority Lahore EME Sector and Globaco (Pvt) Ltd was signed to launch DHA City Project in Lahore.

As per agreement, M/s Globaco (Pvt) Ltd was required to purchase land measuring 25,000 kanals and transfer it to LANDCO, a subsidiary of DHA which was raised for this project. A royalty of Rs 140,000 per kanal was payable to DHA EME Sector by the Globaco (Pvt) Ltd.

Thirty per cent of developed plots of the total developed residential area of the project, based on the final master plan, were required to be allotted to the Pakistan Army personnel (Shuhadahs, JCOs and NCOs) at the agreed subsidised price.

Globaco (Pvt) Ltd was authorised to use the brand name, logo, marks, goodwill and other intellectual property rights of DHA EME Sector for the project.

That said project was launched on 14th June, 2010, without the requisite land and applications were received from general public.

Accused Hammad Arshad Owner of Globaco Pvt Ltd and Management of DHA City received an amount of Rs 15.47 billion approximately from 10421 affectees/allottees approximately.

Rs 10.98 billion were transferred in Bank Account (No. 57001) of Globaco opened in HBL Panorama Branch Lahore.

A total of 32 bank accounts have been found in the name of accused Hammad Arshad or his companies in different banks. Rs 10 billion approximately out of Rs 10.98 billion were transferred from bank account (No. 57001) of Globaco to another bank account (No. 76601) of Globaco opened in same bank branch. Accused Hammad Arshad transferred the money of general public in his 16 bank accounts.

The layout plan/map of the proposed DHA City has still not been finalised.

The project still lacks the excess to main road which is pivotal for launching the project. There is no development in said project.

The accused purchased 13,092 kanal scattered land for said project for an amount of Rs 2.1 billion. The accused neither purchased land for allocation of plots to the families of martyrs and army personnel nor plots were allocated to them.

The accused got allotted 1,170 files of DHA City Lahore from DHA in the name of different persons but did not receive any consideration against those files and thereby misappropriated the whole amount due against the said files. Of those files, 120 files were illegally allotted to Kamran Kayani, a brother of former COAS Gen Kayani.

Hammad Arshad transferred Rs 4 billion in the bank accounts of accused Kamran Kiyani and Tariq Siddique. A court has initiated proceedings of proclamation U/S 87 CrPC against accused Kamran Kayani and Tariq Siddique.

Several call-up notices were issued to Kamran Kayani to appear before the NAB but he did not join the inquiry/investigation proceedings.

Hammad Arshad transferred an amount of Rs 2.3 billion to Dubai through money laundering (Hundi).

In order to deceive and cover his deliberate delay, the accused entered into an addendum agreement (05-06-2013). Under the agreement, Globaco Pvt Ltd can draw any amount from Land Reserve Account after submitting original sale deed duly signed by the representative of DHA. But accused Hammad Arshad withdrew Rs 1.347 billion from Land Reserve Account by submitting sale deed, which was not signed by the representative of DHA.

He was arrested on January 7 this year and accused Brig (r) Khalis Nazir Butt ex-project director DHA EME Lahore was arrested on February 12. Both are on judicial remand.