SHC restrains FIA from taking coercive action against oil marketing company

The Sindh High Court (SHC) on Friday restrained the Federal Investigation Agency (FIA) from taking coercive action against a private oil marketing company subject to condition that it continued cooperation in the FIA investigation and proceedings initiated by the Oil and Gas Regulatory Authority (Ogra).

The interim order came on a petition filed by the Hascol Petroleum Limited against raids and registration of an FIR against the company and its employees on complaints of hoarding of oil following the reduction in petroleum products prices in the country.

A counsel for the petitioner, Arshad M Tayebaly, submitted in the petition that Ogra had issued a show-cause notice to the petitioner with regard to hoarding and shortage of petroleum products in the country on June 3, which was answered accordingly.

The lawyer submitted that despite the fact that Ogra had initiated the process, the FIA also took cognisance of the matter and issued a notice calling for attendance of representatives of the petitioner.

He said that representatives of the petitioner appeared before the FIA on June 11and gave an undertaking that they would continue managing their supply chain to ensure the balance of maintaining legal minimum critical stocks.

He submitted that despite that appearance and undertaking, the FIA issued a fresh notice not acknowledging the presence of the representative of the petitioner earlier and threatening to take ex-parte action if the petitioner failed to appear.

The counsel submitted that the FIA was acting in a mala fide manner and harassing the petitioner although they were fully cooperating in the proceedings initiated by Ogra and the investigation undertaken by the FIA although the agency had no powers as per the FIA Act to start investigation against oil marketing companies.

He maintained that the impugned notice issued by the FIA was void ab initio and illegal. The high court observed that the contention raised required consideration, and issued notices to Ogra, FIA and an additional attorney general for June 30.

In the meantime, the SHC ordered that no coercive action save in accordance with law shall be taken against the petitioner in the investigation in hand till the next date of hearing subject to the condition that the petitioner continued cooperation with the FIA and Ogra, and complied with the undertaking executed by it before the FIA regarding the maintenance of its supply chain of petroleum products in the country.