KARACHI: A joint raid was conducted by the Evacuee Trust Property Board (ETPB) and the Federal Investigation Agency (FIA) at the Cotton Exchange Building on I.I. Chundrigar Road, following which the building was sealed.
The Karachi Cotton Association (KCA) has termed the raid and sealing of the building illegal, stating that the Evacuee Trust Property Board had already been informed that the Karachi Cotton Association is the lawful occupant of the property and that a valid lease has been issued in its favour by the Karachi Metropolitan Corporation (KMC) up to the year 2081.
On the other hand, the Evacuee Trust Property Board maintains that the Cotton Exchange Building is its property. The Deputy Administrator of the Evacuee Trust Department, Israr Hussain Shah, has placed banners on the building declaring it to be the property of the Evacuee Trust Board. According to the banner, the action was taken on the orders of the court. The Board stated that a show-cause notice had been issued to the Karachi Cotton Association, following which the action was carried out.
In response, the KCA strongly objected to the action of the Evacuee Trust Board and the FIA, terming it unlawful, and demanded that if any sealing notice has been issued, it should be withdrawn immediately and the building be de-sealed forthwith. Otherwise, the KCA has reserved the right to initiate appropriate legal proceedings in accordance with the law, including seeking compensation for the losses suffered due to this illegal action. These rights and legal remedies are in addition to those that may be exercised by individual members of the Association who have suffered losses due to the unlawful sealing without prior notice.
The Karachi Cotton Association stated that several business entities, including multinational companies, are operating from the building. The Evacuee Trust Board had issued a show-cause notice to the KCA, claiming that the Cotton Exchange Building was an evacuee property. A timely and detailed reply was submitted, clarifying that the notice was unlawful, as the building could not, under any circumstances, be considered evacuee property. It was explained that the Karachi Cotton Association was registered under the Indian Companies Act, 1913, prior to 1947.
It was further clarified that the property was initially leased by the KMC on November 20, 1883, for a period of 99 years to (1) Seth Usman Saleh Muhammad, (2) Seth Haji Abdul Rahim, and (3) Seth Abdul Ghani Haji Abdul Rahim. Subsequently, on May 22, 1936, the Karachi Cotton Association Limited purchased the property through a registered conveyance deed prior to 1947. Upon expiry of the lease period, an application was submitted to the KMC, and the lease was renewed for another 99 years from 1982 to 2081.
In view of the above facts, the association maintains that since the property was transferred prior to 1947 and the Karachi Cotton Association existed at that time, the property cannot be declared as abandoned property nor can it be termed evacuee property under the Evacuee Trust Property Act, 1975. The property was originally leased for 99 years starting in 1883 and later renewed from 1982 to 2081.
The KCA further stated that no notice was served prior to sealing the building, nor was any authority letter shown or provided.
