‘No legal grounds for immediate action’, rules court in Khan’s state gifts case

A high court in Pakistan on Monday ruled that the Toshakhana 2.0 case against former Prime Minister Imran Khan and his wife, Bushra Bibi, requires further investigation, barring immediate legal action under the current evidence and legal framework.

The Islamabad High Court’s 14-page written judgment, authored by Justice Miangul Hassan Aurangzeb, stated that legal proceedings could not be initiated for failing to deposit a Bulgari jewelry set in the Toshakhana, the state repository for gifts from foreign dignitaries.

"When legal action cannot be initiated for not depositing the gift itself, this becomes a matter of further inquiry," the judgment read.

The case, transferred to the Federal Investigation Agency (FIA) in September last year, revolves around allegations that Khan and Bibi unlawfully retained state gifts worth over PKR 140 million ($501,000) during Khan's tenure as premier from 2018 to 2022.

The gifts, including diamond jewelry and luxury watches, allegedly caused a PKR 32.8 million loss to the national treasury due to undervaluation. The Bulgari jewelry set in question was reportedly received during a 2021 visit to Saudi Arabia.

Legal interpretations

The court clarified that, under the 2018 Toshakhana Rules, only a receipt was required for the gift. Khan had submitted the receipt through the Deputy Military Secretary, negating the FIA's argument.

The government revised the rules in 2023 to allow legal action for non-deposition of gifts, but the court ruled the amendment could not apply retroactively to incidents from 2021.

FIA's position and court directions

The FIA alleged criminal breach of trust and procedural violations but acknowledged during proceedings that no evidence suggested Khan or Bibi had directly influenced officials to undervalue the gift.

The court highlighted the lack of formal charges and noted that Khan had been in custody for over four months without further questioning by investigators. It granted bail, requiring Khan to attend trial hearings and warning that misuse of bail could result in cancellation.

Broader context

The Toshakhana 2.0 case is one of several legal battles Khan faces since his ouster in 2022. He was also recently indicted for inciting attacks on the military during deadly anti-government protests led by his party.

Khan and his party claim the cases are politically motivated efforts to sideline him from politics. The IHC's decision underscores the need for a detailed investigation before any legal proceedings in the Toshakhana 2.0 matter.