Real characters: Dewan Mohammad Yousuf Farooqui, NAB prosecutors, banking executives (Ali Raza – NBP, Shaukat Tarin as policymaker, lawyers like S.M. Zafar, Aitzaz Ahsan, and Justice Iftikhar Chaudhry's Supreme Court activism), journalists covering hearings.
Real facts: Defaults on Dewan Salman Fibre, Dewan Cement, Dewan Farooque Motors; suits filed in Banking Courts; NAB inquiries into "politically motivated loans"; Supreme Court under CJ Iftikhar Chaudhry taking suo moto actions post-2009
The once proud Dewan empire, which had sprawled across cement, fibre, sugar, textiles, and automobiles, was now cornered in the least glamorous of arenas: the courtrooms of Pakistan. If once boardrooms and palatial offices had decided its fate, now it was the dusty halls of Banking Courts, the crowded lobbies of the Sindh High Court, and the imposing Supreme Court in Islamabad that carried the weight of its survival.
By 2010, the narrative had changed. No longer was the group described as a "giant of industry" in newspapers; instead, it was painted as a "serial defaulter." The media, once courted with press releases and dinner invitations, now staked out at court gates, shoving microphones into lawyers' faces.
---
Scene One – Karachi Banking Court No. III
A heavy wooden door creaked open as Banking Court No. III began its proceedings against Dewan Salman Fibre Limited. The courtroom smelled of old files, dust, and the faint hint of sweat from the crowded benches. Reporters scribbled notes, bankers whispered among themselves, and lawyers in black coats adjusted their robes.
At the front, the presiding judge called the case.
"Case No. 457 of 2009: National Bank of Pakistan versus Dewan Salman Fibre Limited."
The NBP lawyer, Rashid Ali, rose. "My Lord, the defendants owe Rs. 9.2 billion in unpaid loans. Payments have been overdue since 2008. Despite repeated notices, no settlement has been reached. We request immediate attachment of the company's assets."
From the other side, Aitzaz Ahsan, appearing for the Dewan Group, stood tall, his voice confident. "My Lord, the facts are not so simple. Yes, there is debt. But this is not a case of willful default. It is a case of a global financial crisis, collapse in polyester demand, and unfair tightening of credit by the very same banks who now cry foul. If the court orders immediate attachment, thousands of workers in Hattar Industrial Estate will be on the streets. Is this justice?"
The judge leaned forward. "Mr. Ahsan, the law cares for contracts. Emotion does not pay creditors."
Aitzaz countered quickly: "But the law also protects against malicious targeting. Why is it that only the Dewan Group is dragged here, while other defaulters are quietly restructured? This is victimization, My Lord, driven by rival lobbies."
A murmur rippled across the courtroom. The reporters perked up—here was drama, here was the stuff of headlines.
---
Scene Two – Outside the Courtroom
Outside the Banking Court, cameras flashed. Talat Hussain of Aaj TV shoved a microphone toward Yousuf Dewan, who had attended the hearing in a crisp suit.
"Mr. Dewan, your group is accused of being the single largest private defaulter in Pakistan. How do you respond to those who say you abused political connections for easy loans?"
Yousuf, sweat glistening on his forehead despite the winter chill, spoke deliberately. "I reject this propaganda. The Dewan Group built industries when others ran after trading. If taking loans to build factories is a crime, then every industrialist is guilty. Yes, we are in crisis, but we will not let rivals write our obituary."
The clip ran on primetime, split-screen with bankers calling him "a habitual defaulter." Damage control clashed with public outrage.
---
Scene Three – Sindh High Court Showdown
Weeks later, the Sindh High Court became the next battleground. The case: Consortium of Banks vs. Dewan Cement Limited.
In Courtroom No. 5, Justice Mushir Alam presided. On one side sat representatives of HBL, UBL, and Bank of Punjab, their lawyers armed with thick files. On the other, Dewan's legal team with S.M. Zafar as senior counsel.
The HBL lawyer began: "My Lord, Dewan Cement owes Rs. 12 billion. The company has defaulted repeatedly, while its executives continue to enjoy lavish lifestyles. This is a case of deliberate diversion of funds."
S.M. Zafar rose calmly. "My Lord, the accusations of diversion are baseless. Cement is a cyclical industry. After 2008, exports collapsed, local demand fell, and banks withdrew working capital. How do you expect survival without liquidity? If the court allows restructuring, Dewan Cement can revive. If not, the banks will recover nothing but scrap value."
Justice Mushir Alam tapped his pen. "Mr. Zafar, the banks have a point. The defaults are undeniable. Do you propose a concrete repayment schedule, or only sympathy?"
Zafar handed over a file. "A repayment plan, My Lord, spread over five years, with interest concessions. We ask this honorable court to direct the banks to consider it."
The judge leaned back, expression unreadable. "Very well. Adjourned for review."
The battle was far from over, but for that day, the Dewans had survived another assault.
---
Scene Four – Supreme Court Islamabad
By mid-2010, the crisis escalated to Islamabad. The Supreme Court of Pakistan, under Chief Justice Iftikhar Chaudhry, had begun taking suo moto notices against "willful defaulters." Newspapers speculated that the Dewan Group was on the list.
In Courtroom No. 1, with its high ceilings and green-robed benches, the atmosphere was electric. Justice Chaudhry, flanked by Justices Khilji Arif and Ramday, called the matter of "Corporate Defaults and Banking Malpractices."
The Attorney General read aloud: "My Lords, major industrial groups owe over Rs. 200 billion collectively. Among them, the Dewan Group stands as the largest private defaulter. We request directions for strict accountability."
At the defense table, Yousuf Dewan whispered to his counsel, S.M. Zafar, who rose to address the bench.
"My Lords, this is not a case of fraud. This is a case of a global downturn crushing an otherwise productive industrial group. If the Court equates crisis with crime, no entrepreneur will dare invest in Pakistan again."
Justice Iftikhar Chaudhry leaned forward, his sharp gaze cutting through the chamber. "Mr. Zafar, Pakistan's people are poor. They see billionaires living in palaces while banks collapse under unpaid loans. How do we explain to them that this is not theft?"
The words hung heavy. Reporters scribbled furiously; the soundbites were gold.
Zafar tried to soften the blow. "My Lord, if there were misuse, let it be proven. But punishing industry for failure will only deepen unemployment. The Dewan Group's cement plants, textile mills, auto assembly lines—all stand ready to revive if given breathing space."
Justice Ramday interjected. "And what of accountability? Shall we forgive every tycoon who hides behind the word 'crisis'?"
The session adjourned with no immediate ruling, but the message was clear: the highest court in the land was circling.
---
Scene Five – Media Circus
Outside the Supreme Court, the media frenzy was uncontrollable. Anchors from Geo, ARY, and Dawn News battled for quotes.
One reporter shouted: "Mr. Dewan, is it true NAB has reopened inquiries into your political connections with Musharraf?"
Another pushed forward: "Do you fear losing Dewan Cement to liquidation?"
Yousuf's media advisor, Batool Qureshi, hurriedly shielded him. "No comments for now. Please wait for the official statement."
But the damage was done. That night, talk shows buzzed with speculation. On Geo's Aapas ki Baat, Najam Sethi commented:
"The Dewan empire is fighting for its life. But the courts are not sympathetic. This is not just about money; it is about the image of a judiciary showing the public it can hold the rich accountable."
---
Scene Six – NAB Inquiry
Parallel to the court cases, NAB (National Accountability Bureau) had begun quietly summoning Dewan executives. Allegations surfaced that loans had been inflated through "political pressure letters" during Musharraf's time.
At a hearing in Rawalpindi NAB headquarters, a stern officer grilled a Dewan finance manager.
"Did the Ministry of Finance issue special directives to banks in 2006 to favor your group?"
The manager stammered. "Sir, I—I cannot confirm. But all industrial groups sought government support. We were not unique."
The officer leaned in. "But you were the largest beneficiary. If evidence proves collusion, criminal charges will follow."
The fear of criminal prosecution added a new, darker dimension.
---
Scene Seven – Family Divide in the Courts
Even within the Dewan family, legal strategy became a point of conflict. At a late-night meeting in Karachi, Yousuf argued for fighting every case aggressively.
"We must not concede. If we admit guilt, the vultures will eat us alive."
But his cousin, Mushtaq, disagreed. "Dragging this in courts only worsens our reputation. Better to settle quietly, sell assets, and save face."
The nephews looked at each other, torn. One whispered: "This is no longer just about money. It is about izzat (honor)."
The family fractured further under the stress of legal wars.
---
Scene Eight – A Symbolic Defeat
In late 2011, one symbolic blow landed. The Banking Court ordered partial attachment of Dewan Farooque Motors' assets for recovery by banks. Though operations had long been suspended, the order was splashed in headlines: "Court Seizes Dewan Motors Assets in Loan Default Case."
For the public, this was confirmation: the mighty Dewans were now fighting with their backs against the wall, stripped of dignity in courts once reserved for small borrowers.
---
Closing Reflections
By the end of 2011, the Dewan empire was less a conglomerate and more a collection of court files. Judges, lawyers, NAB officers, and journalists dictated its fate more than managers or engineers.
For Yousuf Dewan, the courtrooms became his battlefield. Each hearing was a duel—between past glory and present humiliation, between the narrative of victimhood and the charge of willful default.
As one senior lawyer muttered to a journalist outside the Sindh High Court:
"The Dewans are not just fighting banks. They are fighting time, politics, and history itself."
And in that fight, the verdict was no longer just financial—it was existential.
---
---