FIA restrained from taking coercive action against two more oil firms

The Sindh High Court (SHC) on Monday restrained the Federal Investigation Agency (FIA) from taking coercive action against two more private oil companies, subject to the condition that they continue cooperation in the investigation by the FIA and the proceedings initiated by the Oil & Gas Regulatory Authority (Ogra).

The interim order came on petitions filed by Shell Pakistan and Puma Energy Pakistan against raids and registration of FIRs against the companies and their employees on complaints of hoarding oil following the reduction in prices of petroleum products across the country.

Their counsel said that Ogra had issued show-cause notices to the petitioners with regard to hoarding and causing a shortage of petroleum products in the country in the first week of the month, which were replied to accordingly.

The counsel said that despite the fact that Ogra had initiated the proceedings, the FIA also took cognisance of the matter, and acting with mala fide intention, harassed the petitioners, although they were completely willing to cooperate in the proceedings initiated by Ogra and the investigation undertaken by the FIA.

The court was informed that Shell representatives had went to the FIA office on June 11, and on the insistence of the FIA, provided an undertaking to continue managing their supply chain to ensure the balance of maintaining the legal minimum critical stocks and ratably feeding its retail network on a daily basis throughout the month, besides maintaining 21 days’ stocks.

The court was also informed that despite their appearance and undertaking, the FIA had issued a fresh notice not acknowledging the earlier presence of the representatives and threatening to take ex parte (one-sided) action if the petitioner failed to appear.

The counsel questioned the proceedings initiated by the FIA and said that the FIA had no jurisdiction as per the schedule of the FIA Act to start an investigation against oil companies and issue impugned notices, which were therefore void ab initio (to begin with) and illegal.

The counsel said the petitioners had undertaken to ensure the balance of maintaining the legal minimum critical stocks and ratably feeding their retail networks on a daily basis throughout the month, besides maintaining 21 days’ stock.

Referring to the fact that the court had already granted interim relief to two other oil companies, the counsel pointed out that the case of the petitioners was on the same footing. The court said that since the contention raised required consideration, it was issuing notices to Ogra, the FIA and the additional attorney general for June 30.

The court ordered that in the meantime, no coercive action save in accordance with the law could be taken against the petitioners in the present investigation until the next date of hearing.

The court clarified that the ruling was subject to the condition that the petitioners continue their cooperation in the investigation by the FIA and the proceedings initiated by Ogra, plus their compliance with the undertaking executed before the FIA about maintaining the supply chain of petroleum products in the country.