KARACHI: The Karachi Metropolitan Corporation (KMC) on Tuesday approached the Sindh High Court (SHC) against the sealing of the historic Karachi Cotton Exchange building and the forcible eviction of its tenants and occupants, terming the action unlawful and without jurisdiction.
In its petitions, the KMC challenged a sealing order allegedly issued jointly by the Federal Investigation Agency (FIA) and the Evacuee Trust Property Board (ETPB) on December 12, arguing that no prior notice or legal proceedings were initiated to declare the property as evacuee trust property. The municipal body maintained that it was neither issued a show-cause notice nor afforded an opportunity to be heard before the action was taken.
The KMC contended that both the FIA and ETPB lacked jurisdiction in the matter, asserting that evacuee trust properties no longer fell under the federal domain following the 18th Constitutional Amendment. It argued that the Sindh Evacuee Trust Properties (Management & Disposal) Act, 2019, vested exclusive authority over such properties in the provincial government.
Citing the Ministry of Interior, Ministry of Religious Affairs and Interfaith Harmony, ETPB, FIA, the Chief Secretary of Sindh and others as respondents, the KMC filed two petitions challenging both the sealing order and the subsequent registration of a criminal case.
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Appearing before the court along with Karachi Mayor Murtaza Wahab, Advocate Haider Waleed argued that the ex-parte sealing order was unlawful and issued on the false premise that the building’s title vested with the federal government. He submitted that the FIA carried out a raid, forcibly evicted occupants and sealed the premises through what he described as abuse of authority and unconstitutional conduct.
The counsel further maintained that the Karachi Cotton Association (KCA) was the lawful lessee of the property under a registered conveyance deed dated July 22, 1936. He said the original 99-year lease had been renewed by the KMC on November 19, 1982, extending it until 2081.
The petitioner pleaded to declare impugned sealing order and eviction notice as well the impugned FIR unlawful, unconstitutional and without jurisdiction.https://t.co/67xSENTdpj
— Dawn.com (@dawn_com) January 7, 2026
The KMC also challenged the validity of a gazette notification issued in 1963 declaring the property as evacuee trust property, arguing that it was void under the Pakistan Administration of Evacuee Property Act, 1957, which barred declaration of evacuee property after January 1, 1957.
The petitions also assailed the FIR registered by the FIA on December 13 against several individuals, including KMC officials, under various sections of the Pakistan Penal Code, the Prevention of Corruption Act and the Public Properties (Removal of Encroachment) Ordinance.
After a preliminary hearing, a two-judge constitutional bench headed by Justice Adnanul Karim Memon restrained the FIA from taking any coercive action against KMC officials and others in connection with the FIR until January 9.
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