NAB challenges LHC verdict in Chaudhry Sugar Mills Case in Constitutional Court

ISLAMABAD: The National Accountability Bureau (NAB) has challenged a ruling of the Lahore High Court in the Chaudhry Sugar Mills case by filing an appeal before the Federal Constitutional Court.

The LHC had earlier directed NAB to file a reference before the accountability court within one week in order to formally close the case, following a petition by Maryam Nawaz seeking the return of Rs70 million deposited as surety.

The high court had also ordered the accountability court in Lahore to decide the reference within one month.

In its appeal, submitted through the additional prosecutor general, NAB requested the constitutional court to set aside the LHC’s ruling, arguing that the accountability court had no judicial authority if a case was withdrawn at the inquiry stage.

The bureau maintained that where the law does not require judicial approval for the withdrawal of a case, such a requirement cannot be imposed through a judicial interpretation.

NAB further contended that the high court issued its ruling without serving notices to the Office of the Attorney General.

According to the petition, once the NAB chairman had approved the withdrawal of the proceedings, the LHC had no jurisdiction to interpret the law differently. The bureau also argued that the high court had effectively taken suo motu notice of the matter, which it said was beyond its authority.

The watchdog has requested the constitutional court to declare the LHC’s February 4, 2026 decision null and void.

The Chaudhry Sugar Mills inquiry was initially launched on November 14, 2018. During the investigation, Maryam Nawaz — listed as the primary accused — was arrested on August 8, 2019 and remained on a 48-day physical remand.

She later approached the Lahore High Court for post-arrest bail, which was granted on October 31, 2019. The court ordered her to submit two surety bonds of Rs10 million each, deposit Rs70 million and surrender her passport to the registrar judicial.

NAB subsequently challenged the bail in the Supreme Court of Pakistan, but the petition was dismissed on August 22, 2023 after the bureau withdrew its application.

Following amendments to NAB laws, the investigation officer concluded that the case did not establish corruption or corrupt practices. Based on that finding, NAB’s Executive Board decided on April 3, 2024 to withdraw the proceedings under Section 31B(1).

After the withdrawal, Maryam Nawaz filed a miscellaneous application before the Lahore High Court seeking the return of the Rs70 million deposited as surety.

However, the LHC ruled that the case could only be formally closed with the approval of the accountability court and directed the accountability court in Lahore to decide the matter within one month.