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News

LHC says GIDC recovery by SNGPL from industries illegal

November 12, 2022 10:07 PM


The Lahore High Court Saturday declared the recovery of Gas Infrastructure Development Cess (GIDC) by Sui Northern Gas Pipe Limited (SNGPL) from the industries illegal and without lawful authority, reported 24NewsHD TV channel.

 A two-member bench consisting of Justice Shahid Bilal Hasan and Justice Muhammad Raza Qureshi dismissed appeal filed by Sui Gas Department for recovery of GIDC arrears.

Muhammad Mohsin Virk and other lawyers appeared on behalf of Industries. They pleaded to the court that a high-power committee has been constituted by the government to evaluate the recovery of GIDC areas in light of the law. “The committee is not yet decided on the retrieval of GIDC arrears and the recovery campaign for GIDC arrears before the decision of the committee is illegal, they implored.

However, the SNGPL lawyer contended that the recovery of GIDC arrears by the SNGPL in the gas bills of industries is in accordance with the law.

After hearing the arguments of both sides, the court stopped the SNGPL for GIDC recovery from the gas bills of industries across the province including Lahore until the decision of the committee.

The court also directed the committee to take the decision on GIDC arrears within two months.

It is pertinent that the federal government had decided to expedite court proceedings to recover Rs453 billion on account of Gas Infrastructure Development Cess (GIDC) from defaulters, mainly from the fertiliser sector.

The granting of stay orders by the lower courts – against the decisions of the Supreme Court – has enabled business tycoons, mainly from the fertiliser industry, to stop GIDC payments worth Rs453 billion to the federal government.

Reporter: Malik Ashraf



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