Sitara Chemical Industries Limited (SCIL) has moved to distance itself from a high-profile Federal Investigation Agency (FIA) probe, clarifying that allegations of an Rs. 11.96 billion fraud registered against its Chief Executive Officer relate primarily to the affairs of a separate entity , Sitara Energy Limited — and not to Sitara Chemical itself.
In a formal notice submitted to the Pakistan Stock Exchange (PSX), the company stated that any suggestion linking the allegations to its own operations is “factually incorrect.” SCIL further emphasized that no competent court or authority has reached any findings or determination against either the company or its CEO, and it categorically denied the allegations insofar as they pertain to Sitara Chemical. The company said it would pursue all available legal remedies to protect its rights and interests.
The statement also sought to reassure investors, confirming that the company’s manufacturing operations and business activities continue uninterrupted and that the matter has had no adverse impact on its day-to-day operations.
The clarification comes in the wake of widespread media coverage surrounding a case registered by the FIA’s Anti-Corruption Composite Circle in Faisalabad. According to the FIA, the investigation centers on alleged irregularities in electricity procurement involving Faisalabad Electric Supply Company (FESCO), Sitara Energy Limited, and several former FESCO officials.
Investigators allege that power purchase agreements were executed or extended without the requisite regulatory approvals, resulting in substantial losses to the national exchequer. The FIA claims that electricity was sold to FESCO at rates exceeding those approved by the regulator, while power was simultaneously supplied to an affiliated company at lower rates.
The agency has further alleged that subsidized gas was obtained by representing the company as a captive power plant, despite discrepancies in its regulatory status. Several current and former officials have been named in the case, and the FIA has indicated that investigations into the role of additional individuals are ongoing.
The allegations remain under investigation and have not been proven before any court of law.
