SC tells sugar mills owners to sell Rs 40/kg or get ready for contempt of court case

[Naveed Yaseen]

Supreme Court calls for inputs from SBP, NAB, provincial governments: sugar mills told to comply with LHC order
QAMAR UZ ZAMAN
ISLAMABAD (September 17 2009): Expressing astonishment over sudden increase in sugar prices during the month of August, the Supreme Court on Wednesday warned Pakistan Sugar Mills Association (PSMA) of contempt proceedings if its members failed to comply with Lahore High Court (LHC) order of fixing sugar price at Rs 40 per kg. till the apex court reaches any decision.

In order to have a microscopic analysis of the ongoing sugar crisis, the apex court bench headed by Chief Justice Iftikhar Muhammad Chaudhry directed stakeholders to submit their input and called State Bank of Pakistan (SBP) and National Accountability Bureau (NAB) for special assistance.

The court directed the SBP to furnish details regarding loans obtained or written off by the sugar millers, whereas the NAB has been asked to present report of sugar scandal, conducted two years ago by the Bureau, along with details of actions taken.

In this respect, Competition Commission of Pakistan (CCP), Trading Corporation of Pakistan (TCP), Government of Punjab, Provincial Secretaries of Food and Agriculture have also been asked to provide complete data regarding production of sugar (in respective provinces) and rates fixed from January 2009 to July 2009. In addition, average price of sugar per kg of provinces for the last three years has also been sought.

The court also directed the PSMA to produce complete data of sugar production and prices, for the last three years. A three-member bench of the apex comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Sardar Muhammad Raza Khan and Justice Nasirul Mulk postponed the hearing for September 24.

Earlier this month, while disposing of a suo motu case, the LHC had directed the Punjab government to "ensure sale of sugar at Rs 40 per kg to the general public without distinction in the open market, and not only in Sunday Bazaars, Ramazan Bazaars or the Utility Stores under the guard of the police." Punjab Sugar Dealers Association (PSDA) and PSMA challenged the LHC decision especially suo motu powers and authority of the court to fix prices.

On Wednesday, Advocate Shafqat Mehmood Chohan, petitioner at LHC, Advocate Ali Zafar, counsel for sugar mills, and Advocate Farooq Amjad Meer counsel for PSMA, appeared before the court. Farooq Amjad contended that the court has no power under Article 199 of the Constitution to fix the prices.

"You want us to ignore 170 million people of this country just for the benefit of a few (millers); the court cannot let stranded people die on roads", observed the Chief Justice. The CJ referred to the principle laid down in Shahida Zia's case, and said, "Whenever Article 9 of the Constitution is violated, the court has jurisdiction to take appropriate action".

Recalling the statement of Finance Minister that the country was not facing shortage of sugar, the CJ asked the petitioners what had happened last month (August) that sugar price shot up to Rs 60 per kg from Rs 38. The court was not oblivious of the statement of PSMA president not to recognise court order regarding fixation of sugar prices, the CJ added. The court adjourned the hearing for September 24, providing time to all stakeholders for submission of records.

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