Paragon Housing scam: LHC rejects Saad Rafique's bail plea

The court after hearing the arguments had reserved the verdict in the bail application.

LAHORE (Dunya News) – The Lahore High Court (LHC) on Tuesday announced its reserved verdict and rejected a bail application filed by former minister for Railways and Pakistan Muslim League-Nawaz (PMLN) Member of the National Assembly (MNA) Khawaja Saad Rafique and his brother Salman Rafique in the Paragon Housing Society case.

A two-member bench, comprising of Justice Ali Baqir Najfi, presided over the hearing today.

The National Accountability Bureau (NAB) Lahore prosecutor argued before the bench that the Khawaja brothers owned the Paragon Housing Society, and their aide Qaiser Amin Butt, the director of Paragon Housing Society, has turned approver against them in the case.

The NAB prosecutor also termed the housing scheme “illegal”, and stated that the Tehsil Municipal Administration (TMA) had approved the scheme ‘provisionally’ and the Lahore Development Authority (LDA) had dismissed an application of its approval.

Moreover, the bench was informed that people were looted by selling the plots in the society on maps.

Contrarily, Khawaja brothers’ counsel pleaded with the court for approving an interim bail with a reason that a session of the National Assembly (NA) was ongoing and experts’ opinion was required by his clients before they could present their recommendations in the parliament [for budget].

He further argued that the earlier statement recorded in the case was “not in accordance with the NAB chairman’s will”, and the inquiry was done against his clients for the last three years.

“The inquiry didn’t close due to a prize bond, instead it was shelved by the NAB itself,” he added, while stating that the bureau had also apologised while closing the inquiry.

Khawaja brothers’ counsel had informed the court that his clients had nothing to do with the case, and the NAB has nominated them without any concrete evidence in the case, and termed all charges against them ‘a pack of lies’.

The court after hearing the arguments had reserved the verdict in the bail application.

Following the announcement, both PMLN leaders have hinted at challenging the court’s ruling in the Supreme Court.

Earlier, an accountability court in Lahore sent the Khawaja brothers under judicial custody.

A NAB officer had told the court that the chairman of the accountability watchdog had officially approved the reference, and it would soon be presented before the court.

The court, while directing the NAB to speed up filing of the reference, had adjourned the hearing.

On May 16, the court extended their judicial remand till May 30.

On May 2, the court had extended their judicial remand till May 16 in the same case. The Khawaja brothers have been accused of embezzling nearly Rs2 billion.

In all previous hearings, their defense counsel had repeatedly maintained before the court that the details of banking transactions of the last ten years had been handed over to the NAB.

However, NAB’s prosecutor had informed the court that according to records of the Paragon Housing Society an amount of Rs2 billion was transferred to sons of Salman Rafique and Nadeem Zia.

Moreover, the Khawaja brothers are also accused of embezzlement in the scheme by exchanging 50 kanals of their land for 20 two-kanal plots each owned by the Paragon City.

Earlier on April 26, the NAB Lahore approved the filing of a reference against the Khawaja brothers and Nadeem Zia for the alleged corruption in the same case.

The decision was taken in a regional board meeting that was attended by NAB Lahore’s director general and other directors.

According to the handout, Qaiser Amin Butt, the director of Paragon Housing Society, was also included in the inquiry initiated by the NAB, and he was also arrested in November last year. Later, he agreed to turn approver against the Khawaja brothers and Zia.

Butt and Zia established a company “Air Avenue” in the year 2003; however the name was later changed to Paragon City private (Pvt) Limited.

Earlier on Feb 2, the court had rejected a request made by the National Accountability Bureau (NAB) for another extension in the physical remand of the Khawaja brothers in the case, and sent them on judicial remand.

On December 11, 2018, they were detained by the accountability watchdog after the Lahore High Court (LHC) rejected their bail plea.

The NAB had launched an investigation into the alleged scam in November last year after a number of victims staged protests and held a press conference at the Lahore Press Club against what they termed the housing society’s fraud.