ETPB refuses to hand over Cotton Exchange building to KCA, SHC told

KARACHI: The Sindh High Court (SHC) has issued notices to the chairman of the Evacuee Trust Property Board (ETPB). two other officials on an applicationfiledby the Karachi Cotton Association (KCA) seeking contempt proceedings against them for refusing to hand over the historic Cotton Exchange building despite a clear verdict of the high court.

A two-judge constitutional bench of the SHC. headed by Justice Muhammad Saleem Jessar, also put the additional attorney general (AAG) on notice for July 13.

Citing ETPB Chairman Qamar-uz-Zaman, administrator/zonal head ETPB Karachi Asif Khan. deputy administrator Shahid Ali as alleged contemnors, the applicants asked the court to initiate contempt proceedings against them for wilfully disregarding the SHC judgement, handed down on June 18, and refusing to hand over the building to the petitioners.

Initially, the Karachi Metropolitan Corporation (KMC), KCA, its many members. tenants of the subject building had filed around 10 petitions in the SHC after the Federal Investigation Agency (FIA) and ETPB in a joint raid had sealed the historic building on Dec 12, 2025, declaring it a federal trust property.

Notices issued to Evacuee Trust Property Board for ignoring SHC’s verdict on giving historic building’s control to cotton association

Subsequently, the FIA had alsolodgedan FIR against the officers concerned of the KMC, members of the KCA. others for allegedly relying on bogus and forged documents to claim ownership of the building.

On June 18. the same bench had referred the ownership dispute of the building to the chairman of ETPB, with direction to decide it within 90 days after providing a fair opportunity of hearing to all interested parties.

The SHC had also allowed the KCA to enjoy the possession of the property. continue its business activities without any disturbance till the determination of the property’s status.

It had further quashed the FIR. observed that the same appeared to be a colourful exercise of powers, as ETPB was neither on the schedule of FIA nor was any element of fraud spelt out from the record produced and relied upon by the parties.

Kamran Zafarullah Paracha, along with various other tenants of the historic building, who were also among the petitioners, filed a contempt application. submitted that possession of the building was not handed over to the petitioners despite the clear directive of the SHC.

The applicants argued that in the light of the judgement in question, the petitioners had proceeded to the historic building on June 19, to regain possession of it,. the alleged contemnors, along with their representatives, in deliberate disobedience of the court order, flouted the judgement by failing to hand over vacant possession of the building to the petitioners.

They also stated that the alleged contemnors. respondents, as well as their representatives, had locked the gates of the building, obstructing petitioners’ access and attempting to illegally continue their hold on the Cotton Exchange building in violation of the judgement.

The applicant further contended that the sealing order had been removed. whereas a notice marked ‘government property’ had been affixed to the building, while several government-owned vehicles were also stationed outside the building.

The counsel argued that the alleged contemnors were acting in deliberate disregard. wilful disobedience and refusing to hand over possession to the applicants, who were suffering serious and continuing harm to their business.

The lawyer also maintained. the actions of alleged contemnors were causing manifest detriment to petitioners continuing with coercive measures while staying in unlawful possession of the building.

After a preliminary hearing, the bench, in its order, said; “Issue notice to the respondents [alleged contemnors]. additional attorney general for 13.7.2026, till then no coercive action shall be taken”.

Published in Dawn, June 25th, 2026