SHC Issues Notices to ETPB Officials Over Refusal to Return Historic Cotton Exchange Building

The Sindh High Court (SHC) has issued notices to the chairman of the Evacuee Trust Property Board (ETPB) and two other officials following an application by the Karachi Cotton Association (KCA). The association is seeking contempt proceedings against the officials for their alleged refusal to hand over the historic Cotton Exchange building despite a clear court verdict.

A two-judge constitutional bench, led by Justice Muhammad Saleem Jessar, also issued a notice to the Additional Attorney General (AAG), scheduling the matter for July 13.

The contempt application names ETPB Chairman Qamar-uz-Zaman, Karachi zonal head Asif Khan, and deputy administrator Shahid Ali. The applicants contend that these officials have willfully disregarded the court’s June 18 judgment by refusing to return possession of the building to the petitioners.

The legal dispute began after the Federal Investigation Agency (FIA) and the ETPB conducted a joint raid on December 12, 2025, sealing the building and declaring it federal trust property. This led to approximately 10 petitions filed by the Karachi Metropolitan Corporation (KMC), the KCA, its members, and various tenants.

Notices issued to Evacuee Trust Property Board for ignoring SHC’s verdict on giving historic building’s control to cotton association

Concurrently, the FIA had registered an FIR against KMC officials and KCA members, alleging the use of forged documents to claim ownership of the premises.

In its June 18 ruling, the bench directed the ETPB chairman to resolve the ownership dispute within 90 days after providing all interested parties a fair hearing. The court further allowed the KCA to maintain possession and continue business operations without interference until the property’s status is officially determined.

The court also quashed the FIA’s FIR, describing the action as an “exercise of powers,” noting that the ETPB was not within the FIA’s schedule and that the record provided failed to substantiate any claims of fraud.

Kamran Zafarullah Paracha and several other tenants filed the contempt application, stating that the building has not been returned. They argued that when they attempted to regain possession on June 19, ETPB representatives deliberately obstructed them in defiance of the court’s order.

According to the applicants, the respondents have kept the building gates locked to prevent access. They further noted that while the original sealing order was removed, a “government property” sign was affixed to the building, with government vehicles stationed outside to maintain an illegal hold on the property.

Legal counsel for the applicants argued that this willful disobedience is causing significant and ongoing financial harm to the businesses operating within the exchange, describing the current possession by the ETPB as unlawful and coercive.

Following the preliminary hearing, the bench ordered: “Issue notice to the respondents [alleged contemnors] and additional attorney general for 13.7.2026, till then no coercive action shall be taken.”

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