TRG loses Supreme Court appeal

May 12, 2026 (MLN): The Supreme Court of Pakistan has dismissed appeals filed by the TRG Pakistan Limited, The Resource Group International Limited, and Greentree Holdings Limited against a 2025 ruling of the Sindh High Court that cancelled Greentree’s 30% shareholding in TRG Pakistan.

In a notice sent to the Pakistan Stock Exchange, TRG Pakistan said the apex court issued a short order stating that arguments from all contesting parties had been heard and judgment had earlier been reserved on February 3, 2026.

According to the company, the short order stated that “for detailed reasons to be recorded, and subject to what is set out therein by way of amplification or otherwise, leave to appeal for the petitions has been granted … the petitions are converted into appeals, which are dismissed.”

The case stems from a June 20, 2025, ruling in JCM 12 of 2025 by the Sindh High Court, which cancelled the 30% stake held by Greentree Holdings in TRG Pakistan.

TRG Pakistan said it is reviewing its legal options in consultation with counsel.

The company also attached a statement issued by TRG International, which described the Supreme Court’s short order as potentially carrying major implications for foreign investment and corporate governance perceptions linked to Pakistan’s technology sector.

In its statement, TRG International said the apparent outcome could effectively nullify an investment of approximately $90 million made into Pakistan through Greentree Holdings.

The Washington-based company said it was awaiting detailed reasons from the court before determining its next legal and strategic steps, but expressed concern that the order appeared to depart from “accepted principles of corporate jurisprudence.”

TRG International noted that TRG Pakistan’s principal asset is a non-controlling stake representing around 45% voting power in TRG International itself, making the outcome strategically significant for the wider TRG group structure.

The company further warned that cancellation of Greentree’s shares in TRG Pakistan could materially alter voting dynamics within the listed company and potentially strengthen the influence of Zia Chishti, who was the petitioner in the underlying Sindh High Court proceedings.

TRG International claimed that any renewed association of Chishti with the broader TRG platform could create “serious reputational, governance, commercial, and stakeholder risks,” citing prior proceedings and arbitral findings involving the former executive.

The company added that multiple governance and structural safeguards had already been implemented to protect TRG-related entities, portfolio companies, and assets regardless of developments surrounding TRG Pakistan.

Separately, TRG International disclosed that shares held by Zia Chishti in TRG International had been placed into receivership under an order issued by the Supreme Court of Bermuda in January 2026.

The company maintained that its governance framework remains resilient and said its board and management are committed to protecting the long-term interests of the enterprise and its portfolio companies.

TRG International also highlighted that over the last three years it and related parties had prevailed in several arbitration and court proceedings involving Chishti in the United States and Bermuda.

These proceedings, according to the company, covered disputes relating to pledged TRG Pakistan shares, creditor enforcement, asset preservation, and claims asserted by the former executive.

The company warned that uncertainty arising from a possible shift in control or influence at TRG Pakistan could hurt stakeholder confidence and negatively affect perceptions surrounding corporate governance standards within Pakistan’s technology landscape.

It added that a “constructive and orderly resolution” removing the prospect of renewed influence by Chishti over TRG-related entities would be the best path for preserving long-term stakeholder value.

TRG International said it would continue pursuing “all lawful and appropriate measures” to safeguard its businesses, investments, employees, and portfolio companies globally.

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