January 21, 2021: K-Electric Limited (KEL) has welcomed the landmark decision by the Sindh High Court, under which all petitions challenging privatization of the company have been dismissed in favor of KE, its shareholders, and the Privatization Commission (GOP), as announced in the open court today.
The Sindh Hight court made it clear that process of privatization was not illegal and therefore, the applications filed by the plaintiffs lacked conviction as to why the company should not be privatized.
For the uninitiated, the company had been in a longstanding battle with various parties that challenged its privatization, with KESC Labor Union being one of them. The KESC Labor Union and others had approached the court in 2005 against the federal government's decision to sell the company to the Dubai-based The Abraaj Group.
Further criticism was directed towards the company after it struck a deal with Shanghai Electric Company, with some media reports claiming that the judges expressed their displeasure over the agreement in the previously held proceedings.
Copyright Mettis Link News