LHC tells Sharif family to pay Rs 3.5bn mark-up on loan
07 November, 2014
LAHORE: Justice Ayesha A Malik of the Lahore High Court on Thursday directed Ittefaq Group of Sharif family to pay mark-up of Rs 3.5 billion against a collective loan obtained from a consortium of banks.
Malik directed the owners of the group to pay the mark-up and postponed hearing of the petition for a date to be fixed by registrar office. She issued the directions on a petition moved on behalf of the consortium of National Bank of Pakistan and other financial institutions.
The petitioner's counsel said that the basic defaulted loan amounting to Rs 6 billion had been recovered after selling of Ittefaq Group's four units, but according to rules the mark-up was yet to be recovered. He said that bank's demand for the mark-up was according to the agreement reached between the parties at the time of advancing the loan.
He said that the Sharif family had surrendered four units to pay back the loan, but failed to pay the mark-up which amounted to Rs 3.5 billion. He requested that the owners of Ittefaq Group be directed to also pay the mark-up.
The petitioners including National Bank of Pakistan, Habib Bank Ltd, United Bank Ltd, Zarai Taraqiati Bank of Pakistan, Muslim Commercial Bank, PICIC Bank, First Punjab Mudarba and Corporate Law Authority had moved the petition in 1998. Eight banks had sanctioned a collective loan of Rs 3.11 billion to Ittefaq Group of industries between 1982 and 1998.
In most cases the loan was not paid back and the banks added the mark-up charges to the actual credit. The petitioners had requested to order for the recovery of their loan through auction of different units as they had failed to fulfil their financial commitments made against loan given to them.
A single bench had accepted a petition of the banks for 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 Nawaz Sharif's family against bank liabilities for adjustment of loan.
Later, Sharif family had informed that sale agreement of Ittefaq Group's four units had been finalised with Al-Rehmat group. He said that the Al-Rehmat group would buy the units for Rs 6 billion and schedule of the payment had also been decided.
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