Karachi Cotton Association Withdraws Building Plea
The Karachi Cotton Association has formally withdrawn a petition in the Sindh High Court challenging the evacuation of its building on I.I. Chundrigar Road. This decision follows a period of significant uncertainty that affected the national cotton and textile sector.
On December 12, the association issued a press release alleging an “unlawful raid” by the Evacuee Trust and the Federal Investigation Agency (FIA). The Karachi Cotton Association asserted its lawful possession of the Karachi Cotton Exchange Building under a lease from the Karachi Municipal Corporation, valid until 2081.
Dialogue for the Karachi Cotton Association
Chairman Khawaja Mohammad Zubair confirmed that talks would be held in Islamabad to resolve the issue. The association is crucial for the country’s cotton economy, impacting trade, banks, insurance, and textiles through its daily price fixation mechanism. SindhNews.com reported on the industry’s concerns.
The association was incorporated under the Indian Companies Act, 1913. Its property history includes a 99-year lease from the KMC in 1883, later purchased by the KCA Ltd. in 1936. This lease was subsequently renewed from 1982 to 2081.
Despite initial disruption, Mr. Zubair confirmed the resumption of cotton spot rates. While some traders expressed concerns, indicating a readiness to pay rent to the government if necessary, the withdrawal signifies a proactive shift towards negotiation.
The Karachi Cotton Association’s withdrawal of its petition indicates a clear move towards dialogue over litigation to resolve the dispute concerning its building’s possession, aiming to alleviate industry-wide uncertainty.