US Court orders asset turnover against TRG Pakistan's ex-CEO

June 19, 2026 (MLN): TRG Pakistan Limited (PSX:TRG) has been informed that a US federal court in the Southern District of New York has issued a turnover order against Zia Chishti, former CEO of the company, in an enforcement proceeding relating to the recovery of a $9.1 million arbitration award in favour of The Resource Group International Limited (TRGI).

The SDNY ruling, issued on June 18, 2026, follows an earlier arbitration award against Chishti in early 2025, after a US arbitrator found that his pledging of TRG Pakistan shares in favour of JS Bank had violated his contractual obligations to TRGI.

The court further found that transfers of $9.8 million made by Zia Chishti to his spouse were voidable under New York's fraudulent transfer laws, of which $8.7 million were made with actual intent to hinder, delay, or defraud creditors.

The SDNY also noted that Zia Chishti's creditors included TRGI under the arbitration award and the US Internal Revenue Service in respect of approximately $10 million in unpaid federal tax liabilities.

The court ordered the turnover of assets to TRGI within 30 days for an amount up to the remaining balance of the arbitration award, with the ruling also permitting satisfaction of that obligation through the transfer to TRGI of TRG Pakistan shares held by Zia Chishti's spouse.

TRG Pakistan said it is monitoring developments relating to the implementation of the order and will make further disclosures as required under applicable law.

The aforementioned information was disseminated through a notification to Exchange.

The latest order follows a series of earlier SDNY rulings against Zia Chishti.

 On June 10, 2026, the court issued an order restraining him from pursuing litigation in any forum based on conduct alleged in the Released Claims  defined as those claims released under an SDNY ruling dated May 12, 2026  with the restraining order remaining in effect until July 1, 2026.

The SDNY directed further briefing from the parties and indicated it would consider whether additional injunctive relief should be granted.

The June order also noted that the court had previously enjoined Zia Chishti from asserting claims filed in a US arbitration and in Pakistani litigation, stating that the same reasoning applied.

Several of the Released Claims had formed the basis of various litigation proceedings initiated by Zia Chishti against the company and its affiliates in multiple forums, including a petition for shareholder oppression in the Sindh High Court.

The legal proceedings trace back to a May 12, 2026 SDNY ruling in a case originally filed on March 1, 2023, which determined that claims asserted by Zia Chishti against TRG Pakistan and its affiliates  including TRGI and related management relating to actions prior to January 10, 2022, are forever released and cannot be adjudicated in any forum worldwide.

The court ruled that these claims, including Zia Chishti's assertion that the company and its affiliates oppressed him in his capacity as a shareholder, were covered by a Release Agreement signed by Zia Chishti on January 10, 2022, at the time he received over$ 60 million from TRG International in a redemption transaction.

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