FCCP rejects customs' plea for stay order on release of seized Iranian diesel

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 15th Jul, 2026) Federal Constitutional Court on Wednesday rejected a petition filed by Customs authorities seeking a stay order against the return of case property in a matter concerning the smuggling of Iranian diesel.

A three-member bench, headed by Justice Aminuddin Khan, heard the appeal against the annulment of the First Information Report (FIR) and subsequently adjourned the proceedings indefinitely.

During the hearing, the counsel for Customs argued that while seized smuggled diesel is typically auctioned, there are concerns that a single auction permit is being manipulated to facilitate the transport of multiple tankers.

Justice Rozi Khan observed that if an auction permit is being misused for multiple tankers, the matter warrants a comprehensive investigation. The bench questioned how facts could be established in the absence of concrete evidence, noting that the FIR had been suspended and subsequently annulled without a thorough inquiry.

Counsel for the storage company, Ahsan Bhoon, argued that the authorities had sealed the entire storage center under the pretext of the case, despite the facility also holding legitimate refinery oil.

<?php /*?> <?php */?>

He maintained that the Customs department’s case rested solely on the statement of a driver alleging the reuse of an auction permit.

Justice Ali Baqar Najafi remarked that an FIR could only be quashed if evidence of bad faith (mala fide) was proven, and queried the basis for establishing such intent in the current proceedings.

The Customs counsel clarified that while two oil tankers were apprehended on the road, four additional tankers were seized from the storage area. He stated that the department had no objection to de-sealing the storage center, but expressed concern regarding the return of the case property—the seized diesel—following the annulment of the case.

After hearing the arguments, the court rejected the Customs department’s request for a stay order on the release of the seized property and adjourned the case for an indefinite period.