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KORANGI FISHERIES HARBOUR AUTHORITY

MINISTRY OF PORTS & SHIPPING


GOVERNMENT OF PAKISTAN

Provision of record & statement of General Manager (Engineering), KoFHA on


issues related to Plots A-11,12& 13 (Unit # 1) & Plots A-19, 20 & 21 (Unit # 2)
allotted to M/s Legend International (Pvt.) Ltd former New Horizon

Reference: Ministry Ports & Shipping Letter


F.No.1(3)/2014-Fish Dated 10-07-2015

29TH July, 2015

INDEX OF RECORD

S. No.
A

Description of Documents

Folder

Statement on Issues Related to Two Separate Allotments of Land to M/s


Legend International (Pvt.) Ltd.

Allotment Criteria & Legal Framework


(i)

General Layout Of Plots.

(ii)

Selection Criteria Approved by Board of Directors KoFHA on 12th May


1994.
Copy of KoFHA Ordinance No. XVI/1982 (Chapter III, Article-10, Sub-clause

(iii)

(2) (d) - Powers of MD to Allot or Lease Land.


(iv)

KoFHA Board of Directors (Meetings) Regulations 1984 containing role of


Secretary of Board in implementation Decision/Resolution of Board & handling

Placed in
Folder A
Placed in
Folder A
Placed in
Folder A
Placed in
Folder A

of Minutes of Meetings of Board.


(v)

Constitution of Land Allotment Committee by Board in its 42nd meeting held on


19-02-2009 & its TOR.

(vi)

Reconstitution of the Allotment Committee by the Board of Directors in its 47 th


Meeting held on 18-02-2015.

(vii)

Minutes of Nine meetings of Land Allotment Committee (Sub- Committee of


the Board) along with implementation status.

Placed in
Folder A
Placed in
Folder A
Placed in
Folder B

Plots Nos. A-11, 12 & 13 (Unit # 1)


(i)

Offer Letter, Agreement to lease, & Sub-Lease Deed of Unit-I Plots Nos. A-11,
12 & 13 dated 23-05-2007, 28-05-2007 & 23-06-2011 respectively.

(ii)

Previous suspension/restoration Letters, Assurance by M/s Legend International


in future only factory shall be used for Fish Processing Unit & restoration by

Placed in
Folder C
Placed in
Folder C

MFD.
(iii)

Notices for cancellation of Plots Nos. A-11, 12 & 13 due to non-payment &
illegal use of factory for processing chicken feet & animal organs.

(iv)

Present custom evidence of historical data of export of Chicken feet.

(v)

Application for Registration to AQD for furnishing certificate for the present
export of Chicken Feet etc.

(vi)

Previous Court Case of illegal use of factory on Plot A-11, 12 & 13 for
processing animal organs, beef & chicken feet decided in favour of Authority

Placed in
Folder C
Placed in
Folder C
Placed in
Folder C
Placed in
Folder D

including rejection of contempt of court application filed against MD, KoFHA.


D

Plots Nos. A-19, 20 & 21 (Unit # 2)


(i)

Offer Letter & Agreement to lease of Unit-II Plots Nos. Plot No. A-19, 20 &
21 dated 30-04-2010 and 07-05-2010.
2

Placed in
Folder E

(ii)

Notices, Demolishing & Cancellation orders in r/o Plots Nos. 19, 20 & 21.

(iii)

47th Board of Directors Meetings Minutes regarding Status of allotment of Plot.

(iv)

Complaint filed by Mst. Fatima Nazeer with verified copies of enclosure.

(v)

Query of Joint Secretary, P&S, GoS.

(vi)

Reply of Managing Director, KoFHA.

(vii)

Letter to M/s Legend (Pvt.) International asking for the facts of the complaint
lodged by Mst. Fatima Nazeer.

(viii)

KoFHAs letter dated to M/s Legend (Pvt.) International intimating illegal sale
of Plot No. 21 (Ice Factory).

(ix)

Denial of M/s Legend (Pvt.) International.

(x)

Recent Court Case filed by Mr. Noman Bashir as Secretary & representative of
M/s Legend (Pvt) Ltd. against Mian Saeed Ahmed Fareed & Mst. Fatima Nazir.

(xi)

Working Paper placed before Standing Committee of National Assembly on


Ports & Shipping to find out any irregularity in the allotment process in its

Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder E
Placed in
Folder F
Placed in
Folder F

meeting held on 27-09-2011.


(xii)
E

Any other pertinent documents.

Placed in
Folder F

Conclusion

A- Statement on Issues Related to Two Separate Allotments of Land to M/s Legend

International (Pvt.) Ltd.


B-Allotment Criteria & Legal Framework
1. An area of 100,000 Sq.M has been developed for the private sector for the establishment of fisheries allied
industries viz; fish / shrimp processing plants, cold storages, ice factories, fish de-hydration / oil extraction
plants, fish canning plants, boat building / repair facilities at the harbour as shown in General Layout Plan
at Folder-A.
2. Selection Criteria and terms/conditions as approved by the Board in its meeting held on 12 th May, 1994
for the allotment of plots for fisheries allied industries is placed at Folder-A. The Board has always been
apprised of status of allotment and cancellation wherever meets. Under Article-10 (2) (d) of the Korangi
Fisheries Harbour Authority Ordinance No. XVI of 1982, the Managing Director has the powers to allot
or lease suitable plots of land to private individuals or firms for the establishment of boat building yards,
fish processing industries, ice plants, cold storage facilities and related ancillary activities. The Board in
its meeting held on 19th February, 2009 constituted a Committee comprising MD, KoFHA, Chairman,
Pakistan Fisheries Exporters Association and Fisheries Development Commission as representative of the
Ministry to recommend allotment of plots in KoFHA in future with following objectives:
i.
ii.
iii.
iii.

Assess the viability of the project.


Financial soundness of the firm.
Ascertain the actual area of land needed for the project.
Submit the recommendations to MD, KoFHA for decision.

3. The Committee was reconstituted by the Board during its meeting held on 11/12/2013 comprising six
members of the Board. However during 47th meeting of the Board held on 18-02-2015 the Board while
considering powers of Managing Director under article 10(2) didnt feel necessity to have sub-committee
of the Board. Instead constituted a committee comprising Director, MFD, AFDC, Representative of
PAKFEA under the Chairmanship of Executive Director/General Manager (E), KoFHA to put up
recommendations to MD, KoFHA, who is the authority under Ordinance to make allotment. KoFHA
Ordinance XVI 0f 1982, Board of Directors(Meetings) Regulations-1984, Constitution of Board Land
Allotment Committee, Standard Agreement to Lease & Indenture of sub-Lease Deed and Site Plan of
Plots are placed in Folder-A.
4. Most of the allotments made thereafter by the MD, KoFHA till February 2015 were based on the
recommendations of the sub-committee of the Board. The Minutes of the nine meetings of Committee are
placed in Folder-B. It may be noted in every meetings having agenda item related to Legend International
( Pvt.) Ltd former New Horizon, the Committee has show grave concern over delay, non-payment and
other violations of the conditions of Agreement to Lease.
5. It may be noted that initially the plots are allotted without any title/sublease under an Agreement to Lease
with prime condition to establish the facility in a given time period, failing which the Authority will have
rights to cancel the allotment and forfeit the amount(s) so far paid by the party. In case of successful
implementation of project, the Authority registers the Lease Deed in favour of party for a period of 30
years. Accordingly since year 1996 the Authority has cancelled the allotments and forfeited a huge sum
over Rs. 8.00 Million from a number of parties who have acquired land but failed to establish the industry
within stipulated time. As such the allotment made under an Agreement at very nominal price (Rs.
300/SM since year 1994) should not be compared with allotments of land being made by other Industrial
Estates/Housing Authorities/Societies etc. This is reason why the Authority easily cancelled the
allotments time and again and forfeited the amounts paid by the defaulting parties. Otherwise the plots
would have kept unutilized by Real Estate Investors for indefinite period. Even after completion of the
industrial units, the land is not allowed to be pledged with Banks as the ownership belongs to Port Qasim
Authority. Permission to mortgage given to M/s Legend International is placed in Folder-C.

C- Plots Nos. A-11, 12 & 13 (Unit # 1)


The plots were offered to the firm M/s New Horizon on the recommendations of the Land Allotment
Committee on with following terms & conditions was issued on 23-05-2007, the Offer Letter,
application, authorization by M/s New Horizon, letter of MINFAL are placed at Folder C:
(i)
(ii)
(iii)

The plots are being allotted specifically for setting up fish processing plant and any other use shall
tantamount for cancellation of allotment.
The plant shall be constructed and make functional with in a time period of 24 months.
The requirement of Pakistan Fish Inspection and Quality Control Act 1997 shall be fully
complied.

After acceptance of the conditions and production of an Undertaking that the fish processing shall be
completed within two years, the Authority executed the Agreement to Lease with following the terms and
conditions :
(i)
(ii)
(iii)
(iv)

The plots are being allotted specifically for setting up fish processing plant and any other use shall
tantamount for cancellation of allotment.
The plant shall be constructed and make functional with in a time period of 24 months. Therefore
Time is the essence of the contract.
The requirement of Pakistan Fish Inspection and Quality Control Act 1997 shall be fully
complied.
For any non observance or breach of the conditions of Agreement to Lease including nonpayment of dues, the Authority shall have the rights to cancel the Agreement and allotment and
forfeit the amount(s) paid by the defaulter.

The firm instead of two years taken more than 5 years to complete the plant. Several notice for delay, nonpayment of dues was served. The Land Allotment Committee in almost every meeting has showed great
concern on inordinate delay of completion of project and non-payment of dues but allowed grace time
again and again.
Finally the Lease Deed was registered on 23-06-2011 in favour of company on the recommendation of
Land Allotment Committee while a lot of finishing works were incomplete including exterior
development on the basis of an Undertaking produced by the firm that the balance of work shall be
completed by 30th December 2011, which they failed.
The company remained in defaults of non payment of millions of Rupees on account of ground rent &
utility services (Electricity & Water). Even several times their deposited cheques were dishonoured by
their bank.
The firm in blatant violation of terms of Indenture of Lease, Pakistan Quality Control Act started
processing chicken feet, beef and animal organs. When they were stopped by the Authority & MFD they
filed a suit at Malir Court and obtained Stay Order for few weeks. They also filed a contempt of court suit
at Malir Court against MD, KoFHA but the court after hearing the case rejected their plaint and declared
the contempt application anfractuous.
They also approached former Standing Committee of National Assembly on Ports & Shipping whereupon
the MD, KoFHA was called to submit the complete record of land allotment, criteria of land allotment and
any discrimination/violation if made in allotment process. The Committee going through record was
satisfied with the transparency of the all allotments.
They also approached Standing Committee of Senate during their visit to harbour on 30th January 2014 for
obtaining relief for processing chicken feet & animal organs but miserably failed to convince the
Committee in presence of Land Lease conditions of KoFHA & Fish Inspection & Quality Control Act of
1997. Only upon written assurance of the company that they will not process any other product except
fish, MFD restored their License for export. The complete record of Court Case filed M/s Legend
International at Malir court is placed in Folder D.
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Through a complaint filed by Mr Nazir Ahmed, containing a letter F.No. 2-2/05-Epid dated 9-03-2015 of
Ministry of National Food Security & Research it was noted that the firm is still trying to obtain
permission to process chicken feet & animal organs, which declined that the firm has fish processing
facility. Therefore the Authority approached to Director AQD for providing the record of export of
chicken feet and animal organ with copy to DG, MFD. Nonetheless the Authority from websites has
downloaded record of export of chicken feet which shows that M/s Legend International is still processing
chicken feet in their factory. The recent export record of chicken feet is also placed in Folder-C. It is also
learnt from reliable resources that about 5 containers of chicken feet are still available in their cold
storage. During recent inspection by MFD Inspectors they were denied access to cold store where chicken
feet are kept with the excuse of misplacement of keys.
The complete record of notices, reminders in respect repeated violations of the conditions of Agreement to
Lease is placed at Folder-C.

D- Plots Nos. A-19, 20 21 (Unit # 2)


An additional piece of land measuring 2,952 Sq.m (Plots A-19, 20 &21) on the rear side of their existing
factory was allotted to construct the value added fish processing plant with in a time period of 30 months
under an Agreement to Lease executed on 7.5.2010.
Considering inordinate delay in establishment of agreed undertaking M/LI were served with repeated
expedition notices and also for clearance of dues on account of land occupancy value and ground rent in a
manner prescribed by the Agreement. The Land Allotment Committee in all meetings had shown great
concern on their failure to construct the facility within stipulated time period.
During 7th meeting of the Plot Allotment Committee held on 22nd January, 2013 it was seriously noted
that M/s. Legend International lagging far behind the schedule and after notice as decided in 6th Meeting
of the Plot Allotment Committee they constructed only boundary wall. Committee suggested to get the
plan approved within a week and submit a proper implementation schedule with time frame to be
acceptable to the Authority. Accordingly notice was issued to M/s Legend International on 11-04-2013, in
response M/s Legend International intimated that on Unit-II Phase-I construction started whereas Phase-II
will start in December 2013. Phase-I RCC structure completed and plant & Machinery installation is in
progress. They kept Authority in dark that the structures are being constructed for ice factory on Plot
A-21.
Immediately after learning the Authority issued Notices to stop and brought the matter to the knowledge
of Land Allotment Committee during 8th. meeting that M/s Legend International in violation of approved
building plan for fish processing industry have started constructing an ice plant using substandard material
on an area of about 1,000 Sq.m ( Plot A-21). Besides an amount of Rs 3.339 million is outstanding on
account of land lease and utility charges as on 31st July, 2013. It is now established that M/s Legend
International are not giving any heed to instructions given by the Authority to pay utility bills in timely
manner and still constructing ice factory.
The Plot Allotment Committee in its meeting held on 4th September, 2013, shown great concern over the
delay and illegal construction of Ice Factory instead of approved project for value added fisheries
products. Accordingly Notice dated 25th Sept., 2013 was served to M/s Legend to immediately demolish
all illegal construction/installations of Ice Factory within a fortnight and commence construction of plot as
per approved plans for value added fisheries products. They were also warned that incase of noncompliance and non-observance of the conditions, the Authority in accordance with article 6 of the
Agreement to Lease shall cancel the Agreement and allotment and forfeit the amount paid by them.
Recently an employee Mr. Noman Basheer duly authorized through Board resolution where one Director
Saeed Ahmed Fareed was absent a case has been filed at Malir Court for revocation Sale Agreement of
Plot A-21 by authorized Director Mr. Saeed Ahmed Fareed whereas as per Indenture of Sub Lease dated
23-06-2011 in respect of Plot Nos. A-11, 12 & 13 executed between Korangi Fisheries Harbour Authority
6

and Mr. Saeed Ahmed Fareed, Director of M/s Legend International (Pvt) ltd. duly authorized by all the
Directors of M/s Legend International (Pvt) ltd. to sign/execute deed and all other matter related to
establish Fish Processing Unit with Korangi Fisheries Harbour Authority, copies are enclosed.
Further, Mr. Saeed Ahmed Fareed, Director of M/s Legend International (Pvt) ltd (former New Horizon
International) has also signed the Agreement to Lease dated 07-05-2010, as authorized representative for
allotment of Plots A-19, 20&21. Moreover, he appeared as representative of M/s Legend International
(Pvt) ltd. before the Board in matter related to cancellation of plots and illegal construction of Ice Factory
on Plot No A-21.
It is surprising to note that an Employee namely Noman Bashir of M/s Legend International (Pvt) Ltd,has
filed Civil Suit No. 302/2015 against Mr. Saeed Ahmed Fareed, Director, Legend International (Pvt) Ltd
and Mst. Fatima Nazeer w/o Nazeer Ahmed, for cancellation of Agreement dated 01-04-2013 and grant of
permanent injunction under u/o 39 rule 1 & 2 R/w Section 151 CPC in a court of Senior Civil Judge,
R.Court Malir, Karachi, copy enclosed which appears to be a desperate attempt to cover up the illegal sale
of Plot No. A-21 at Korangi Fisheries Harbour. It is also quite interesting to note that same Mr. Noman
Bashir has signed as witness to Tenancy Agreement made between Mian Saeed Ahmed Fareed of
M/s Legend International Pvt Ltd and Mst. Fatima Nazir through her husband Nazir Ahmed on
23-02-2015 for the use of electricity and machinery for illegally constructed Ice Factory on Plot A-21,
copy also enclosed duly verified by Mr. Nazir Ahmed as true. The complete record of Suit for
Declaration, Cancellation of Agreement dated 01-04-2013 (Sale Deed of Plot A-21) and permanent
injunction.
It may be noted that on the basis of controversy as apparent from the recent communications made by
Mr. Noman Bashir, Sale Deed, Tenancy Agreement, petition filed by Mst. Fatima Nazeer w/o Nazeer
Ahmed to Secretary Ports & Shipping, the instant suit filed with mala-fide intentions at least signifies that
a Sale Deed of Plot No. A-21 was actually made between Mr. Saeed Ahmed Fareed, Director, the fully
empowered Representative of M/s Legend International (Pvt) ltd and Mst. Fatima Nazeer w/o Nazeer
Ahmed in blatant violation of the Agreement to Lease.
The Authority is bound to act as per the terms & condition of the Indenture of Lease in respect of Plots
Nos. A-11, 12 & 13 and Agreement to Lease in respect of Plots Nos. A-19, 20 & 21 entered with Legend
International (Pvt) Ltd. However, the violations which were not know to the Authority/Board particularly
the illegal sale of Plot No. A-21 prior to 47th Board of Directors meeting held on 18-02-2015 lead to a
lenient consideration by the Board. After knowing the gross violations committed by M/s Legend
International, it is obligatory on the part of competent authority, who is Managing Director, KoFHA under
article 10(2) of Korangi Fisheries Harbour Authority Ordinance XVI 0f 1982 to protect the interests of
Authority. Accordingly MD has lawfully cancelled the allotment of Plots No. A-19, 20 & 21, under article
6 of Agreement to Lease. It is worthwhile to mention here that under the terms of KoFHA Board of
Directors (Meetings) Regulations 1984, the Board in its subsequent meeting while confirming the Minutes
of 47th. meeting of Board of Directors, shall be apprised of the reasons under which the Board resolution
related the case could not be given effect.
The Authority on 16-07-2015 has advised M/s Legend International (Pvt) ltd. to handover back the
possession of Plots immediately and further refrain from operating the illegally constructed Ice Factory.

E- Conclusion
The facts & figures as briefly mentioned above duly supported with undeniable record placed in folders
D, E & F clearly reveals that M/s Legend International (Pvt) Ltd, has committed following violations of
Indenture of Sub Lease in respect of Plot No. A-11, 12 & 13 and conditions of Agreement to Lease in
respect of Plot No. A-19, 20 & 2, in addition to criminal offence of fraud of selling the Plot A-21 of
Authority :