Tribunal Nullifies Sugar Cartel Fine, Orders Fresh Hearing

Islamabad: The Appellate Tribunal has remanded the Rs44 billion sugar cartel fine case back to the Competition Commission of Pakistan (CCP) for a fresh hearing. The Tribunal has directed the Commission to decide the matter within 90 days.

In a significant ruling, the Tribunal stated that the Chairperson of the CCP cannot exercise a casting vote in judicial proceedings. The decision comes after the Tribunal reviewed the 2021 verdict, in which the Commission had imposed a Rs44 billion fine on sugar mills for forming a cartel and fixing prices.

According to the Tribunal, two members of the Commission had supported the fine, while two opposed it, resulting in a tie. The Chairperson broke the tie with a casting vote, turning the split decision into a majority one. However, the Tribunal has now ruled that the casting vote was invalid, rendering the previous decision tied once again.

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The Tribunal has ordered the Chairperson of the Competition Commission to rehear the case and issue a new decision. The Pakistan Sugar Mills Association had earlier challenged the Commission’s decision in court, specifically questioning the legality of the Chairperson’s casting vote.