Last Updated on September 7, 2026 by YeJahan
YEJAHAN DESK
KARACHI (Sept 2): The Sindh High Court on Wednesday ordered officials to unseal the historic building of Karachi Cotton Exchange and immediately return it to the petitioners.
The decision came during a hearing in Karachi, where the court took up a contempt case against the Evacuee Trust Property Board (ETPB). The legal battle centers on who owns the historic site. Representatives for the cotton traders argued that ETPB officials should face punishment for ignoring earlier court rulings to vacate the property.
In a written order, the judges noted that the ETPB administrator failed to offer any valid explanation for keeping the building locked.
The order said: “By virtue of main order, specific directions were given to the parties that the petitioner shall enjoy possession. Instead the respondent / alleged contemnors have passed order and then notified the property to be evacuee trust property without making compliance of the Court’s order, which in our view is in clear defiance of Court’s order and tantamount to an offence within the meaning of Article 204 of the Constitution of Islamic Republic of Pakistan, 1973.”
“Today, when confronted, the alleged contemnor Asif Khan, Administrator ETPB present along with his counsel submits that since the authority has passed the order in terms of the directions of this Court, hence no case for contempt is made out. We are not satisfied with the assertions made by the alleged contemnor. In view of this the alleged contemnors are directed to de-seal the property in question and submit compliance report before the next date of hearing. To come up on 10.09.2026 to be taken up at 10:00 a.m.”, the written order elaborated.
The court has demanded a progress report proving the building has been handed back, and the next hearing is scheduled for September 10.
The conflict began on December 12, 2025, when the Evacuee Trust Property Board (ETPB) and the Federal Investigation Agency (FIA) teamed up to lock down the historic building. Officials claimed the property belonged to the federal government under a 1963 law regarding properties left behind during Partition. They accused the Karachi Cotton Association (KCA) of staying there illegally and taking rent from tenants without permission.
The KCA and its tenants fought back in court, bringing forward a lease from 1933 to prove they were the rightful owners and that the building was never government property. The sudden shutdown brought the multi-billion-rupee cotton trade to a standstill, stopping daily market updates and hurting the entire textile industry.
On June 18, 2026, the Sindh High Court ruled that the government had locked the building without following proper legal steps. The court canceled the 1963 notice, dropped the FIA’s criminal case, and told the KCA to move back in and restart business. The judges gave the ETPB chairman 90 days to hold a fair hearing to figure out who actually owns the land.
Instead of following the rules, the ETPB and FIA kept the doors locked and blocked traders from their offices. To make matters worse, the ETPB chairman went behind the court’s back in August 2026, passing a new order claiming the property belonged to the government without even giving the KCA a warning. Because the authorities refused to back down, the traders filed a contempt of court case. This led to the court’s latest decision, where judges rejected the ETPB’s excuses, ordered the immediate unsealing of the doors, and demanded a progress report by September 10.
