LHC questions subsidy on sugar export

LAHORE

The Lahore High Court on Tuesday questioned the Punjab government’s move of awarding subsidy to sugar industry on export in exercise of its discretionary powers and ordered the advocate general to inform the court about legal position of the subsidy given to any industry. 

Chief Justice Syed Mansoor Ali Shah issued this order while hearing a petition of Hunza Sugar Mills against non-provision of 10 percent subsidy on sugar exports announced by the government. 

During the course of hearing, the chief justice asked the counsel to identify the law under which the government announced subsidy for sugar industry and ignored other sectors. Under what criteria the government found sugar industry entitled to have the subsidy from public money, the chief justice further asked the petitioner’s counsel. 

Counsel of the mills argued that the government had been showing discrimination in implementation of the subsidy. He said the government stopped subsidy of his client (mills) without any reason. 

The sugar mills’ lawyer argued that the government announced the subsidy in light of the recommendation of Council of Common Interests (CCI). He objected that the court was distracting from the main case. However, Justice Shah observed that the court was fully conversant to its direction. 

The chief justice directed the government and the petitioner’s counsel to come up with arguments on the legitimacy of the subsidy given under the discretionary powers. The hearing was adjourned till next week.