KARACHI
\nThe Sindh High Court has cleared the way for criminal defamation charges to proceed against the leadership of The Resource Group (TRG) Pakistan, ordering TRG Chairman Mohammed Khaishgi and CEO Hasnain Aslam to appear in the court.
\nThe court\u2019s ruling follows a previous order by a District and Sessions Court in Karachi from February 2023, which allowed criminal defamation charges against the management and board of TRG International to proceed. The case was initiated by former TRG Pakistan CEO Zia Chishti, who disputes statements made about him in a letter from TRG International, which he claims were defamatory.
\nThe defendants in the case include Khaishgi, Aslam, CFO Hassan Farooq, General Counsel Pat Costello, and various current and former board members, including Zafar Sobani, Patrick McGinnis, Khaldoon Latif, and John Leone.
\nTRG\u2019s management had obtained a stay order from the Sindh High Court, which temporarily halted the District Court proceedings. However, after a lengthy delay, the High Court has now vacated the stay, allowing the lower court to proceed. A hearing in the District Court is scheduled for November 16, where the defendants are expected to appear.
\nIn response to this development, some defendants have sought a further stay from the Supreme Court. Legal analysts suggest such a stay may not be likely, given the Sindh High Court\u2019s recent statement that legal grievances should be addressed first in the trial court.
\nThese criminal defamation proceedings are part of a broader legal dispute between Chishti and TRG\u2019s current leadership, which also includes arbitration cases in the United States. In one US-based arbitration initiated by TRG in January 2023, the company alleges Chishti was restricted from selling or leveraging his shares in TRG. Consequently, Chishti\u2019s shares are currently frozen under a stay order in Pakistan pending the outcome of this arbitration.
\nConversely, Chishti has filed a separate arbitration case in the US, alleging various violations by TRG, Aslam, Khaishgi, and other TRG affiliates. A federal court in the United States recently ruled to allow Chishti\u2019s arbitration to proceed after rejecting TRG\u2019s request to halt the case.
\nThe outcome of these legal proceedings may have implications for the future of TRG, particularly with board elections scheduled for January 2025. Chishti has publicly criticized TRG\u2019s current leadership, citing a drop in stock price and recent financial losses.
\nWhen asked for comment, Chishti reiterated his concerns regarding TRG\u2019s financial performance and governance. \u201cTRG and its current management have overseen significant financial challenges and a decrease in shareholder value,\u201d he stated. He also referenced operational issues, such as the insolvency of Afiniti, a TRG asset in Bermuda, and delays in TRG Pakistan\u2019s shareholder meetings.
\nAslam and Khaishgi declined to comment on the court proceedings.
\nFollowing the High Court\u2019s ruling, the District Court is likely to continue proceedings. Observers note that several defendants may be based outside Pakistan, which could affect their ability to attend hearings in person.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI The Sindh High Court has cleared the way for criminal defamation charges to proceed against the leadership of The Resource Group (TRG) Pakistan, ordering TRG Chairman Mohammed Khaishgi and CEO Hasnain Aslam to appear in the court. The court\u2019s ruling follows a previous order by a District and Sessions Court in Karachi from February […]<\/p>\n","protected":false},"author":2,"featured_media":168481,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-442732","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n