Tribunal Rules Against Lahore Qalandars Management, Orders Share Repurchase or Damages
An arbitration tribunal, led by retired Justice Maqbool Baqer, has delivered a significant ruling against the current management of Kausar Rana Resources (Pvt) Limited (KRR), the parent company of the Pakistan Super League (PSL) franchise Lahore Qalandars. The tribunal declared the transfer of majority shares by Qatar Lubricants Company (Qalco) to brothers Atif Naeem Rana and Sameen Naeem Rana as legally invalid.
The judgment mandates that the respondents must either compensate Qalco with Rs2.96 billion, including markup, or immediately reinstate Qalco’s 51 percent majority shareholding in KRR. This dispute arose between Fawad Ahmed Rana, Managing Director of Qalco, and his younger brothers, Atif and Sameen Rana.
Qalco had initially secured the Lahore franchise rights from the Pakistan Cricket Board (PCB) in 2015, subsequently transferring them to KRR, in which Qalco held a 51 percent stake.
Disputed Share Transfers and Geopolitical Tensions
The legal battle centered on two share transfers in 2018 and 2020. The younger Rana brothers claimed these transfers were necessary to navigate geopolitical tensions between the UAE and Qatar, which they argued would impede Qalco’s participation in UAE-based events like the T10 league. They asserted that Fawad Rana consequently agreed to transfer 4 percent of Qalco’s shares to Atif Rana, making him the majority shareholder.
However, Qalco and Fawad Rana alleged these transfers were fraudulent and fabricated. The respondents also claimed certain payments to KRR were for a scouting event arranged for His Highness Shaikh Sultan, Chairman and CEO of Qalco. SindhNews.com has learned that claimants dispute this, citing a lack of supporting documentation.
Tribunal Highlights Critical Deficiencies
The tribunal’s judgment detailed several critical failures in the respondents’ defense. It noted Fawad Rana’s travel records proving his absence from Pakistan during the purported signing of transfer deeds. Furthermore, retired Justice Baqer observed that Sameen Rana acknowledged during cross-examination that the attesting witness’s signatures did not match known samples.
Crucially, the respondents failed to produce original transfer deeds or call key witnesses, including the company secretary, despite their availability. The tribunal also noted the admission that no payment was made for the shares, contrary to the purported offer letters.
Secret Share Sale Exposed
A pivotal revelation in the proceedings was the respondents’ secret sale of 30 percent of KRR shares to an individual identified as Mr. Niazi for $5 million. This sale, allegedly concealed from Qalco and the tribunal until exposed, further weakened the respondents’ position. The tribunal dismissed their counterclaim of Rs50 billion due to a lack of credible evidence.
“The tribunal is constrained to hold that the transfer documents cannot be regarded as having been legally and validly executed, and in any event are void for want of consideration,” stated the official ruling. The younger Rana brothers have 45 days to comply with the order.
The tribunal’s decision, referred by the Supreme Court on December 2, 2024, requires the respondents to provide a full account of KRR profits and the proceeds from the “Niazi deal” to the Lahore High Court. This ruling significantly impacts the ownership and future management of the Lahore Qalandars franchise.