Paragon City scam: Khawaja brothers’ acquittal pleas rejected

LAHORE: An accountability court on Wednesday rejected acquittal applications of former railway minister Khawaja Saad Rafique and his brother Khawaja Salman Rafique in the Paragon City scam.

Judge Syed Jawadul Hassan announced the verdict, which was reserved on October 14. The Khawaja brothers were produced before the court upon expiry of their judicial remand period. The court extended their judicial remand and summoned prosecution witnesses on the next date of hearing.

In their acquittal applications, the Khawaja brothers had challenged jurisdiction of the National Accountability Bureau (NAB) to make a reference against them.

On the last hearing, the defence counsel submitted that the bureau did not have the authority to investigate and file a reference in the matter as Paragon City was a company and the NAB could not interfere in companies matter.

He argued that the NAB filed the reference against his clients without considering the Securities and Exchange Commission of Pakistan’s (SECP) regulations and Companies Act. He submitted that the SECP regulations and Companies Act explained the method of trial and conviction and the sessions court was empowered to hear the matter.

Terming the reference illegal, the counsel said the filing of reference was a violation of fundamental rights of his clients, adding there was no allegation of misuse of powers against the Khawaja brothers.

However, the NAB prosecutor submitted that after the indictment, the jurisdiction could not be challenged as per the Supreme Court judgments, saying the bureau had the authority to investigate the matter. The reference stated that the Khawaja brothers through their “benamidars” and with the abetment of former MPA Qaiser Amin Butt and Nadeem Zia established a housing project in the name of Air Avenue. The project was later converted into a new housing project namely Paragon City Pvt Ltd, which the NAB said was an illegal society and not approved by the Lahore Development Authority.

It alleged that the former railways minister and his brother received monetary benefits of Rs 58 million and Rs 39 million, respectively, from the society through proxy firms under the garb of consultancy services.

The Khawaja brothers were arrested in December last year. The Lahore High Court had dismissed their post-arrest bail petitions on June 18.