SHC Reserves Verdict in Karachi Cotton Exchange Building Sealing Case

Karachi: The Sindh High Court on Tuesday reserved its verdict after hearing multiple petitions regarding the sealing of the Karachi Cotton Exchange building.

During the proceedings, the court observed that the Federal Investigation Agency (FIA) had indicated its intention to convert the case into an inquiry.

Counsel for the petitioner, Anwar Mansoor Khan Advocate, argued that the FIA had no jurisdiction in the matter. He contended that if the agency lacked jurisdiction, it could not initiate an inquiry. Justice Adnan-ul-Karim Memon remarked that if the FIA’s option was not accepted, the case would remain intact.

The traders’ counsel requested the court to order the de-sealing of the Cotton Exchange building until the question of jurisdiction was decided. Justice Memon questioned why the FIA had taken such keen interest in the matter, observing that the FIA is an investigative body rather than a law enforcement authority. The court further asked whether the FIA had jurisdiction in the presence of a provincial law, adding that administrative or ownership disputes do not fall within the agency’s mandate unless a crime has been committed.

Counsel for the Evacuee Trust Property Board informed the court that the building had been sealed by the Evacuee Trust Property authorities and that the FIA had only provided assistance. Meanwhile, counsel for the Karachi Metropolitan Corporation (KMC), Barrister Haider Waheed, argued that even if the building was considered evacuee property, it remained a provincial matter as a provincial law on evacuee property exists in Sindh.

During the hearing, Justice Zulfiqar Ali Sangi questioned what evidence had been gathered since 1963. He remarked that the property was purchased in 1936, yet a notice was issued in 2025 leading to the sealing of the building, without giving traders an opportunity of being heard.

Justice Memon further observed that if a provincial law existed in Sindh, it was questionable how a federal agency could issue a notice in the matter. After hearing detailed arguments from all parties, the court reserved its decision.