Sindh High Court hears dispute over Rs. 24 billion payment for black scorpion exports

A legal dispute over an alleged Rs. 24 billion payment for the export of black scorpions to a German company has come before the Constitutional Bench of the Sindh High Court with petitioners seeking the release of funds they claim remain unpaid.

KARACHI: A legal dispute over an alleged Rs. 24 billion payment for the export of black scorpions to a German company has come before the Constitutional Bench of the Sindh High Court with petitioners seeking the release of funds they claim remain unpaid.

The petitioners, Muhammad Siddique Allah Razi Riaz Ahmed and others maintain that they supplied black scorpions to a German firm under an agreement signed in 2014. They allege that the payment connected with the transaction has not been made available to them despite the claimed transfer through banking channels.

Representing the applicants, Advocate Sajid Mehboob told the court that the German company had transferred the money through Barclays Bank to Pakistani banks. He argued that his clients had brought foreign funds into Pakistan through legal channels but had been unable to obtain the amount.

The case names the State Bank of Pakistan the Ministry of Finance and four private banks as respondents.

According to the petition the financial institutions failed to complete the necessary procedures for receiving, verifying and releasing the remittance associated with the international shipment.

The applicants have asked the court to order an independent investigation led by a senior State Bank official to establish what happened to the claimed payment and determine whether banking procedures were properly followed.

They have also requested that the relevant institutions preserve all paper files electronic records and other documentation connected with the transaction. In addition the petitioners have sought appropriate action against the private banks over their alleged handling of the funds.

During the hearing, representatives of the State Bank and other respondent banks requested additional time to submit their replies.

The Constitutional Bench granted the parties one month to file their responses. The matter will proceed after the respondents present their positions on the allegations raised in the petition.

The dispute centres on the petitioners claim that a substantial export-related remittance remains inaccessible despite being transferred through formal financial channels.

The court’s next steps will depend on the replies submitted by the respondents and the material available to establish the transaction’s history. The claimed payment the banks’ handling of the funds and any potential liability remain matters to be examined through the legal proceedings.