PESHAWAR: Peshawar High Court has declared as illegal reopening of an inquiry against a cargo businessman of alleged ‘suspicious transaction’ on account of facilitating import of vehicles for overseas Pakistanis.

A bench consisting of Justice Sahibzada Asadullah and Justice Inamullah Khan accepted a petition filed by businessman Fazal Ilahi, who challenged re-opening of the inquiry, which was earlier closed by Federal Board of Revenue (FBR), by an officer of Federal Investigation Agency (FIA) in Mardan.

The bench observed that every coercive exercise of state power must be sanctioned by law and exercised by the authority designated for that purpose. The bench observed that the respondents including FIA deputy director in Mardan, had been unable to produce any order or approval issued by the zonal board of FIA for reopening the inquiry.

‘The entire exercise, therefore, suffers from an inherent jurisdictional defect. While there is no statutory embargo against reopening a concluded inquiry where circumstances so warrant, such reopening must strictly conform to the procedure prescribed by law and must emanate from the competent authority,’ the bench observed in its 12-page detailed judgement.

Petitioner claims he legally facilitated vehicles’ import by overseas Pakistanis

The bench ruled: “Since that indispensable requirement is absent in the present case, the impugned action cannot be sustained. Consequently, while allowing the instant writ petition, the reopening of the inquiry and all proceedings emanating there from are declared to be without lawful authority and of no legal effect.”

The bench, however, clarified that the judgement should not preclude the director general, FIA, or any other authority competent under the governing statutory framework, from reopening the concluded inquiry if the law so permitted and if such exercise was undertaken strictly in accordance with Federal Investigation Agency Act, 1974, FIA (Inquiries and Investigations) Rules, 2002, the applicable Standing Operating Procedures (SOPs) and for reasons legally justified.

Advocate Mukhtiar Ahmad Maneri appeared for the petitioner and stated that his client initially operated a transport business at Gadoon Amazai, Swabi district, and after relaxation of the import policy through an SRO on Jan 15, 2019, he also commenced the business of facilitating overseas Pakistanis in the lawful import and custom clearance of vehicles, acting merely as a commission agent for such services.

He stated that in 2021, the petitioner was repeatedly summoned by officials of FIA in connection with an inquiry arising out of a suspicious transaction report (STR). He said that the petitioner appeared before the authorities concerned and submitted a detailed statement, explaining the nature of business and the legality of transactions undertaken by him.

The counsel said that upon completion of inquiry, the matter was referred by FIA to Directorate of Intelligence and Investigation (Inland Revenue), FBR, which conducted an independent examination.

He said that on July 5, 2022, it was categorically concluded that no proceedings under Anti-Money Laundering Act, 2010, were warranted against the petitioner, thereby completely exonerating him of the allegations forming the basis of STR.

He stated that despite the findings, respondent officials had once again been repeatedly calling and summoning the petitioner regarding the same matter, although no fresh material or incriminating evidence had surfaced.

Mr Maneri argued that such repeated harassment, notwithstanding the closure of the inquiry by the competent authority, was arbitrary and amounted to abuse of power.

He contended that all vehicles import transactions facilitated by the petitioner were carried out strictly in accordance with Import Policy Order, 2016. He stated that relevant overseas Pakistanis imported their vehicles through lawful banking channels and paid all applicable customs duties and taxes.

He argued that once the inquiry had attained finality by its closure and the reference made to FBR had also culminated in a finding that no case of tax evasion was made out, the reopening of the same inquiry by an officer lacking statutory competence was wholly without jurisdiction.

An inspector of FIA conceded before the bench that if a concluded inquiry was to be reopened, such exercise must emanate from zonal board envisaged by FIA Standing Order No 05/2020 and zonal board was the competent authority to accord such approval.

The bench observed that SOPs showed that reopening of a closed inquiry or case should be presented before zonal board for decision. It added that reopening of inquiries were not left to unfettered discretion of every investigating officer but were subject to the approval of zonal board.

“A statutory power exercised by an officer lacking jurisdiction is no exercise of power in the eye of law,” the bench observed.

Published in Dawn, July 13th, 2026