News Desk
ISLAMABAD: The federal government and K-Electric (KE) have signed a deal to settle 27-year old dispute of 312.733 million rupees, after litigation.
KESC (now K-Electric) imported electrical material and high voltage equipment for rehabilitation and expansion of Transmission, Grid and Distribution system during 1995-96. But owing to non-payment of custom duty amounting to 321.733 million rupees by KESC, forty consignments of equipment remained stuck off at port for some time.
ECC in its meeting held on 18 May 1998 decided that the issue of payment of duties/ taxes and demurrage should be addressed by a committee. ECC further decided that the equipment stuck at the port should be released immediately on submission of indemnity/ guarantee by the company.
CBR (now FBR) released the equipment after submission of indemnity bonds of 321.733 million rupees by KESC. But the issue remained unresolved till the time of privatisation and later included in Implementation Agreement of April 2009, as an unsettled issue.
Court tussle between government, K-Electric
In 2018, K-Electric filed a writ petition in the Sindh High Court and the case was dismissed by the court with the direction that liability of 321 million rupees outstanding towards duty and taxes for over twenty years shall be paid by the petitioner within 4 weeks from the date of the order.
K-Electric aggrieved by the order of High Court, filed a civil suit in 2019 before the apex court which in its interim order of 6 May, 2019 directed the petitioner to deposit 25% of the claimed liability of 321.733 million rupees and directed the federal government to discharge its obligation.
Consequently, K-Electric deposited 80.5 million rupees in the government treasury. During hearing of the case on 5 October, 2022, the apex court directed the governmnet to resolve the matter within 3 months.
