LAHORE: The Lahore High Court has ruled that former railways minister Khwaja Saad Rafiq and his brother former provincial minister Khwaja Salman Rafiq have been involved in cheating the public at large by promoting an illegal society — Paragon City to gain financial benefits, which constitute an offence under section 9-A of National Accountability Ordinance 1999.

The detailed verdict on bail petitions of the Khwaja brothers by a two-judge bench says that the housing society has not been declared by the Lahore Development Authority (LDA) as a legal housing project and it has been promoted in order to gain financial benefits by the suspects.

The bench comprising Justice Ali Baqar Najafi and Justice Sardar Ahmad Naeem had last week denied the post arrest bails to the PML-N leaders through a short order.

The NAB had already filed a reference before the trial court accusing the Khwaja brothers of wrongfully gaining Rs18.2 million approximately from M/s Paragon City (Pvt) Limited in their bank accounts.

The prosecution alleges that the Khwaja brothers through their “benamidars” and with the abetment of former MPA Qaiser Amin Butt and Nadeem Zia established a housing project in the name of Air Avenue. The project was later converted into a new housing project namely Paragon City but it was not approved by the LDA.

It accused that the duo, along with other accomplices, cheated the public at large and obtained illegal financial benefits from funds of the illegal society. Butt during his physical remand with the NAB had turned an approver against the Khwaja brothers.

A NAB reference already filed with the trial court states that Saad established a proprietorship concern namely M/s Saadan Associates whereby he wrongfully gained an amount of Rs58 million from M/s Executive Builders, a proxy of Paragon City, in the last few years under the garb of services of consultancy.

Similarly, the reference accused Salman of establishing M/s KSR Associates and receiving Rs39 million from the M/s Executive Builders under the garb of consultancy services.

Paragon’s directors Nadeem Zia, Umar Zia and Farhan Ali had been implicated as suspects in the reference. However, they have been declared absconders.

Giving multiple reasons for dismissing the petitions, the bench rules in its verdict that confession of a co-suspect can be used as circumstantial evidence and not as exclusive and such statement can also be referred to at the time of deciding bail application.

It observes that the jurisdiction of the high court under Article 199 of the Constitution for the grant of post arrest bail is extraordinary and it should be exercised with caution to advance the cause of justice and not to frustrate it or defeat the intent of law.

Relying on a Supreme Court’s judgment, the bench rules that when sufficient material is available on record to suggest that the accused had exercised his authority to enrich himself and a number of persons implicated him as a principal beneficiary, bail should not be granted.

The bench also finds the Khwaja brothers guilty of conflict of interest ruling that the Paragon City had been promoted in order to gain financial benefits without its approval by the LDA.

They were arrested on Dec 11, 2018 after the LHC had dismissed their pre-arrest bail they enjoyed for almost three months. They remained on physical remand till Feb 2 when the trial court sent them to jail on judicial remand.

Published in Dawn, June 30th, 2019