Sugar Mafia Gets Reprieve as PKR 44 Billion Penalty Case Sent Back for Rehearing

ISLAMABAD: In a major development, the Competition Appellate Tribunal (CAT) has set aside the Competition Commission of Pakistan’s (CCP) earlier decision imposing a PKR 44 billion penalty on the Pakistan Sugar Mills Association (PSMA) and its member mills, directing a fresh hearing into the case.

The Tribunal ruled that the CCP Chairperson’s use of a casting vote in the 2021 decision was legally flawed, as such authority does not extend to quasi-judicial proceedings under the Competition Act, 2010. The original order—issued by a split four-member bench—had relied on the casting vote of then Chairperson Rahat Kaunain Hassan to break the tie and uphold the penalty.

CAT’s short order instructs that the matter be reheard by the current Chairperson or another Commission member uninvolved in the previous decision, with a final verdict to be issued preferably within 90 days.

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The case, which involves allegations of cartelization and anti-competitive practices by the so-called “sugar mafia,” has been under legal scrutiny for years. With the Tribunal now fully functional following the appointment of a new Chairman, several long-pending appeals, including this high-profile one, are moving forward.

Read more: Tribunal Nullifies Sugar Cartel Fine, Orders Fresh Hearing

The fresh hearing is expected to determine whether PSMA and affiliated sugar mills violated competition laws, potentially reshaping the legal landscape for Pakistan’s powerful sugar industry.