LHC stops govt from taking action against Tareen’s sugar mills

LAHORE: The Lahore High Court (LHC) on Tuesday conditionally stopped the government from taking “coercive measures” against two sugar mills owned by Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Tareen in connection with the enforcement of sugar prices.

The court directed the sugar mills to submit surety bonds equivalent to the difference of sugar price with the cane commissioner. The court also ordered for clubbing all identical petitions and fixing those with the main case, in addition to asking the cane commissioner to maintain a record of sugar mills’ supply.

Justice Rasaal Hasan Syed passed the orders while hearing a petition filed by JK Sugar Mills and JDW Sugar Mills, challenging a government notification about fixing the retail price of sugar at Rs89.50 per kilogramme and also sought reply from provincial government and others.

The counsel for the petitioners argued before the court that the secretary industries had fixed the ex-mill and retail price of sugar at the rate of Rs84.50 and Rs 89.50, respectively, on July 30 through a notification.

He told the court that the petitioners were aggrieved by the fixing of sugar prices, whereas the step was “illegal”. He argued that the LHC had ordered the government to hear the stance of the sugar mills before fixing the prices of sugar. However, despite the court orders, the petitioners were not heard, and new rates were fixed through a notification, he added.

He said the price fixed by the government was “irrational and contrary to the factual position of the cost of production”. He contended that it was not possible to sell sugar at the prices fixed by the government.

He submitted that the court had already granted relief to many sugar mills on the identical petitions. He pleaded with the court to set aside the notification that fixed sugar prices and suspend the same till the final decision on the petition.

However, a law officer opposed the plea, saying that prices of the sugar were fixed after hearing the stance of 32 sugar mills. He said all requirements were fulfilled before fixing the price of sugar. He said the federation and some other respondents were not impleaded in the petition.

Subsequently, the court, after hearing the arguments, stopped the provincial government from taking coercive measures against the petitioner mills.