The chief justice asked the authorities to give advertisement in this regard so that all those against who the commission recommended action appear before the court on next date of hearing. He said the persons who were involved in written off loans would also be taken to task.
A three member Commission, headed by former Justice Syed Jamshed Ali, a former judge of SC, was constituted on 3rd June 2011 for the recovery of written off loans from 1971 onward and to compile a report. Former Justice Syed Jamshed Ali Commission in February 2013 submitted the report according to that Rs 87 billion were written off in 38 years - between 1971 to 2009.
The Commission's report says that loans worth Rs 2.38 billon were waived off between 1971 and 1991 whereas loans worth Rs 84.62 billion were waived off between 1992 and 2009. The chief justice in the last hearing had directed Governor State Bank Pakistan Tariq Bajwa to prepare the gist of commission's report on writ off loans.
Additional Attorney General Rana Waqar submitted that the gist is already given in the Volume II of the commission's report, which had proposed further action in 222 cases. The commission out of 740 loans waived off cases gave hearing in 339 cases and finally 222 cases were recommended for further proceedings. The gross amount written off/waived in all cases was 84.621 billion, out of which 35.286 billion related to cases decided under Circular No.29/2002.
The commission had recommended to close the cases falling in categories; bona fide business loss necessitating write off; change in government policies affecting the business; liquidation of the company by the order of the court; settled by National Accountability Bureau or under settlement cases; gap between the amounts repaid and availed being insignificant or principal outstanding recovered; record not available; write-offs relating to public sector; the bank not being in public sectors on the date of the decision to settle as non-performing loans (NPL).
According to the commission report the 222 cases of loan defaulter emerged in various banks. In Habib Bank Limited (HBL) total number of cases 94, amount sanctioned Rs 8154.481 million, amount recovered Rs 3883.848 million and amount written off Rs 13489.154 million - principal Rs 4357.313 million and interest Rs 9132.201 million.
National Bank of Pakistan (NBP) total number of cases 65, amount sanctioned Rs 6538.134 million, amount recovered Rs 2785.131 million, amount written off Rs 11553.312 - principal Rs 3480.232 million and interest Rs 8073.232 million.
Industrial Development Bank of Pakistan (IDBP) total number of cases 15, amount sanctioned Rs 1138.892 million, amount recovered Rs 675.820 million, amount written off Rs 2548.208 - principal Rs 1406.847 million and interest Rs 1141.361 million.
In NIB total number of cases 5, amount sanctioned Rs 331.882 million, amount recovered Rs 172 million, amount written off Rs 1008.424 - principal Rs 222.712 million and interest Rs 785.712 million.
ZTBL total number of cases 25, amount sanctioned Rs 1662.528 million, amount recovered Rs 907.171 million, amount written off Rs 5462.513 - principal Rs 1652.236 million and interest Rs 3810.277 million. United Bank Limited (UBL) total number of cases 3, amount sanctioned Rs 107.070 million, amount recovered Rs 50.921 million, amount written off Rs 113.199 - principal Rs 65.721 million and interest Rs 47.478 million.
Pak Libya total number of cases 5, amount sanctioned Rs 407.401 million, amount recovered Rs 225.502 million, amount written off Rs 597.880 - principal Rs 366.004 million and interest Rs 231.876 million.
SME total number of cases 7, amount sanctioned Rs 120.191 million, amount recovered Rs 83.688 million, amount written off Rs 224.476 - principal Rs 57.199 million and interest Rs 167.277 million. BOK total number of cases 3, amount sanctioned Rs 257.389 million, amount recovered Rs 164.919 million, amount written off Rs 344.831 million - principal Rs 161.373 million and interest Rs 183.458 million. The case is adjourned till first week of June.