Islamabad (June 30, 2018): The Chief Justice of Pakistan Justice Saqib Nisar has offered the exemption of mark up for those who return 75 per cent of loans.
During the hearing of the case by the two-member bench, the top court of the country gave the option to 222 loan defaulters to either pay 75% of the principal amount they had borrowed from the national bank or banking court decide their cases.
He announced that there is “consensus among all stakeholders” that two dams should be built from the money recovered from 222 companies who had had loans worth billions of rupees written off illegally.
During the hearing of a suo motu case pertaining to illegal waivers of loans amounting to Rs54 billion a three-member bench, headed by Chief Justice of Pakistan Mian Saqib Nisar, suggested two options to defaulters; either pay 75% of the principal amount or their matters will be referred to the banking courts for adjudication, where their money along with markup and properties could be confiscated. The bench has sought a written reply from all persons over its options.“Every penny will be recovered,” remarked the top judge. Observing that every citizen was in debt of 117,000 rupees due to international loan, he said the recovered amount could be used to repay the country’s debt. He also warned that if someone does not pay back voluntarily then their matters could be referred to NAB as well.
The formulae were presented by justice Muneeb Akhter who told the court that the loans can be returned on the formula of A minus B multiply by 75 per cent means, the borrowed loan minus returned amount multiply by 75 per cent.
However, the chief justice warned that if banking courts issued a verdict against the companies, they would have to pay the full amount of their loans. He further said that the parties which failed to repay their loans could also go to jail for as long as one year.
At this point, several lawyers representing different companies named in the case urged the CJ not to forward the issue to banking courts. Justice Nisar then ordered the petitioners to submit written recommendations regard.
Formula: (Loan borrowed-return amount)*75%
In an earlier hearing, the apex court had sought concise statements from 222 individuals and companies which illegally got their loans written off between 1971 and 2009.
Taking cognisance of a letter written by Muttahida Qaumi Movement (MQM) founder Altaf Hussain in 2011, the apex court had formed a judicial commission, led by Justice (retd) Jamshed Ali, to probe the waivers.
The commission probed over 700 cases in which Rs84 billion worth of banks loans were written off from 1971 to 2009. In its 13-volume report, the commission pointed out that apart from individuals, big businesses also got their loans written-off.
It said a number of politicians availing loan waivers may be much higher than the number appearing in written-off loans figures. It also claimed that influential groups did exercise pressure on banks, but there was no direct evidence in this regard as the evidence may have been destroyed at the initial stages.
CJP directed all Farooq H Nike and other lawyers to submit the further written suggestion in this connection and directed that a special bench will hear the case on July 04.