LAHORE: A Lahore High Court division bench on Monday reserved verdict on an intra court appeal challenging an order allowing auction of four units of Ittefaq Group to return loan of about Rs3 billion to creditor banks taken by family of Prime Minister Nawaz Sharif.
A single bench had accepted a petition of National Bank of Pakistan and other banks seeking sale of Ittefaq Foundries, Brothers Steel at Kot Lakhpat, Ittefaq Brothers at Shahdara and Ilyas Enterprises at Bund Road Lahore. These units were surrendered by former Prime Minister Nawaz Sharif’s family against bank liabilities for adjustment of loan. Eight banks had sanctioned a collective loan of Rs3.11 billion to Ittefaq Group of industries between 1982 and 1998. In most cases the loan was not paid back and the banks added the markup charges to the actual credit.–Staff Reporter
Ilyas Meraj and other shareholders had challenged the auction saying it was in violation of the Companies Ordinance.
The division bench comprising Justice Ayesha A. Malik and Justice Shehzada Mazhar reserved judgment on the appeal after arguments of all parties concluded.