Supreme Court Annuls Rs44B Sugar Mills Fine

The Supreme Court has nullified a Rs44 billion fine levied by the Competition Commission of Pakistan (CCP) on sugar mills nationwide, declaring both the initial ruling and the subsequent appellate order as unlawful.

Per media reports, a division bench comprising Justice Shakeel Ahmed and Justice Aamer Farooq overturned the Competition Appellate Tribunal’s May 21, 2025, ruling and the CCP’s August 13, 2021, “casting vote” decision.

The saga commenced in November 2020, when the CCP issued show-cause notices to the Pakistan Sugar Mills Association (PSMA) and sugar mills across Pakistan, alleging breaches of Section 4 of the Competition Act, 2010, which bans cartel-like behaviour.

A four-member CCP panel adjudicated the case, but the verdict split evenly in August 2021. Two members, including then-chairperson Rahat Kaunain Hassan, deemed the mills guilty, while two others advocated for a new inquiry.

Hassan’s casting vote tipped the scales toward conviction, imposing the colossal multibillion-rupee fine, sparking widespread controversy.

The sugar mills contested this before the Competition Appellate Tribunal, which, in May 2025, mandated a fresh hearing by a member uninvolved in prior decisions.

Before the Supreme Court, the mills argued that the tribunal’s directive contravened the Competition Act and its regulations. The bench concurred, invalidating both the tribunal’s order and the CCP’s casting-vote decision.

While the fine was voided, the Court permitted the CCP to launch new proceedings based on the 2020 notices.

The sugar mills were represented by Counsels Abdul Sattar Pirzada, Shehzad Atta Elahi, and Sikandar Bashir Mohmand, with Asma Hamid representing the CCP.