PESHAWAR: The Peshawar High Court has ordered the de-sealing of three currency exchange markets here and declared the premises won’t be used for forex trading until next hearing into a relevant case on Jan 17.

It also directed owners of those markets to produce two surety bonds each of Rs500,000 and adjourned hearing into the matter.

The Federal Investigation Agency had sealed the Hafeez Market, Faiz Market and Azad Market early this month over the alleged smuggling of US dollars.

Justice Wiqar Ahmad of a single-member bench issued the de-sealing order after hearing petitions of the owners of those markets, including Hafeezur Rehman, Haji Niaz Mohammad and Noor Habib.

Stops forex trading there until next hearing

In almost identical petitions, market owners challenged the sealing of their respective premises and the issuance of notices to them by the FIA under Section 5(5) of the FIA Act.

In the notices, the agency alleged that traders of those markets were damaging the economy by carrying out the illegal businesses of hundi, hawala and black marketing of US dollars.

Advocate Danyal Asad Chamkani appeared for the petitioners and said the FIA had sealed the markets of his clients without having powers to do so.

He said the FIA had issued notices to the petitioners under Section 5(5) of the FIA Act, whereas the said provision did not authorise the sealing of any premises by it.

Referring to that legal provision, the counsel said, “If, in the opinion of a member of the FIA conducting an investigation, any property which was the subject-matter of an investigation was likely to be removed, transferred or otherwise disposed of before an order of the appropriate authority for its seizure is obtained, such member may direct the owner not to remove, transfer or otherwise dispose of such property in any manner except with previous permission of such member.”

He added that the law’s section in question didn’t empower the FIA to seal a property.

The lawyer argued that the petitioners were the owners of their respective markets comprising several shops, which were rented out.

He contended that if the tenants were involved in any illegal business of money exchange, the FIA should act against them individually instead of targeting market owners.

Mr Chamkani pointed out that apart from money exchange dealers there were also shops dealing in other businesses.

Deputy attorney general Sanaullah rejected the arguments of the petitioners’ counsel and stated that several FIRs were registered against different money changers having shops in those markets.

He said another high court bench headed by Justice Roohul Amin Khan heard an identical petition a few days ago, so those cases might also be fixed for hearing by it.

The bench directed the high court’s relevant office to fix petitions before a bench headed by Justice Roohul Amin Khan on Jan 17, the next date of hearing.

It, however, granted interim relief to the petitioners by issuing directives to de-seal their markets.

The FIA recently conducted raids in the Chowk Yadgar area known for forex trading and sealed four markets and plazas having dozens of shops. It claimed that the action was taken to eliminate the black marketing of US dollars and strengthen the rupee.

Published in Dawn, December 29th, 2022