HYDERABAD: The ongoing battle between two groups of businessmen and traders – one led by Seth Goharullah and the other by Adeel Siddiqui – to regain control of the Hyderabad Chamber of Commerce and Industry (HCCI) took a new turn on Monday when the Director General of Trade Organisations (DGTO) rejected former’s application for the renewal of old HCCI’s licence granted on May 7, 2008.

The Siddiqui group was granted licence on April 20, 2022 but it has lately been withdrawn amid the legal battle. So, presently no legitimate HCCI exists.

In its July 1 order, the DGTO has asked the old HCCI to explain within the next 10 days that why its licence may not be cancelled under section 7(1)(a) and (h) of Trade Organisations (TO) Act, 2013 for failing to apply for the renewal of its licence within the prescribed time and failing to meet the requirements for renewal of licence within reasonable time.

DGTO rejects old body’s plea for renewal of licence; new leadership’s licence already withdrawn

Old-HCCI’s licence had expired on May 6, 2011 and it applied for its renewal on June 27, 2013.

The DGTO pronounced its order on July 1 after hearing the two sides on June 27. The old HCCI was represented by Fakhar Alam Zaidi (who had served as its secretary general) through its counsel while Adeel Siddiqui was also in attendance at the June 27 hearing.

Under the May 22 order of the Islamabad High Court, the DGTO had withdrawn the licence issued to the Siddiqui-led new HCCI. But the court had remanded the case of licence cancellation of old HCCI to the DGTO asking it to issue a new show-cause notice under relevant section of law.

DGTO’s July 1 order, authored by Mohammad Usman Qureshi, Regulator (TO), states in the operating paragraph that the main issue that needs to be determined is status of old HCCI’s licence.

The IHC had set aside DGTO’s Jan 27, 2020 order of cancellation of licence and federal government’s order of April 1, 2022 whereby appeal against the Jan 27 order of DGTO was dismissed. A new licence was issued by federal government to Siddiqui-led HCCI on April 20, 2022. But the IHC had declared that this licence was granted in violation of requirements of section 91(1) of the TO Act 2013 and remanded the matter back to the DGTO which, it said, would be at liberty to amend the show-cause of Jan 10, 2020 issued to the old HCCI and thereafter “decide whether or not to cancel old HCCI licence”.

DGTO’s fresh order

It has been stated in the July 1 order that record shows old HCCI’s licence had never been renewed after it was granted in 2008. It says the IHC has clearly stated that its application for renewal of the licence was not filed within the prescribed time period. However, it further says, the application for renewal of its licence was processed by DGTO’s office and vide Jan 1, 2020 order, the same was turned down and the “said order has not been set aside by federal government or any high court. Hence, the licence of old HCCI stands expired”.

It read: “It will be appropriate to highlight that section 6 of TO Act 2013 and Rule 10 of TO Rules 2013 stipulate that a licence can be renewed up to five years. In instant case, licence of old HCCI stands expired for more than five years, hence it cannot be renewed for more than five years under TO Act 2013.”

Near showdown

On May 26, Seth Goharullah led his supporters to wrest control of the HCCI from its Siddiqui-led management as had happened previously but failed due to strong resistance from the rival group. The chamber’s premises are presently in the control of the Siddiqui group even after withdrawal of its licence on June 12 by DGTO. Siddiqui has already impugned the May 22 IHC order before Supreme Court.

Ziauddin Qureshi, Seth Goharullah’s trusted confidant in the old HCCI, said that the June 27 proceedings were held in line with IHC’s order regarding issuance of amended show-cause notice, and added that the amended notice so issued would be studied and responded. He insisted that nothing had been finalised as yet.

Adeel Siddiqui, however, observed that the business community was being misled by Seth Goharullah and his cronies that the old HCCI’s licence had been renewed. “The July 1 order is self-explanatory that DGTO has rejected application for renewal of licence. My licence has not been cancelled, rather withdrawn under IHC’s order and we have questioned it in the SC. The business community should understand that old HCCI’s licence will not be renewed,” he said.

Meanwhile, a war of words is raging on the social media between supporters of the rival sides.

Published in Dawn, July 2nd, 2024