A three-member bench, headed by Chief Justice Mian Saqib Nisar, heard the suo motu regarding deadbeat loans of Rs 54 billion, which were written-off. However, the bench was informed that out of 222 borrowers, only 39 individuals/ companies/organisations were willing to avail the option 1. The bench, therefore, referred the matter to the Chief Justice of Pakistan to constitute a special bench for examining the cases of rest of the borrowers.
The court granted another eight weeks to the 39 individuals/companies/ organisations and rest of the borrowers, who may later on wish to avail first option. The Chief Justice said as the banks who had given loans have not claimed the written off money; therefore, the recovered amount would go to Dam Funds. A three-member Commission, headed by Justice Syed Jamshed Ali (retd), 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.
The commission after having considered several hundred cases recommended that 222 cases ought to be taken up for further proceedings. The report not only recommended action against those who got their loans written-off but also against bankers and officials who helped in getting the loans waived off.
According to the report of inquiry commission, Habib Bank Limited waived off loans in 94 cases, National Bank of Pakistan, 65 cases, Industrial Development Bank of Pakistan, 15 cases, NIB, 5 cases, Zarai Taraqiati Bank Limited, 25 cases, United Bank Limited 3 cases, Pak Libya, 5 cases, SME, 7 cases and Bank of Khyber waived off loans in three cases.
The case was adjourned for an indefinite period.