Karachi: TRG Pakistan Limited has been drawn into a legal proceeding following a court order issued by the United States District Court in the Southern District of New York. The order, dated June 19, 2026, mandates the recovery of assets relating to an arbitration award against Mr. Zia Chishti, former CEO of the company.

According to the court documents, Mr. Chishti had previously been found in violation of his contractual obligations to The Resource Group International Limited (TRGI) after pledging his company shares in favor of JS Bank. The arbitration award, issued in early 2025, required Mr. Chishti to pay US$9.1 million to TRGI.

The New York court found that Mr. Chishti had transferred US$9.8 million to his spouse, deeming these transfers voidable under the state's fraudulent transfer laws. Of these transactions, US$8.7 million were identified as having been made with the intent to hinder, delay, or defraud creditors, including TRGI and the United States Internal Revenue Service. The IRS is owed approximately US$10 million in unpaid federal tax liabilities by Mr. Chishti.

The court has ordered the turnover of assets to TRGI within 30 days, permitting Mr. Chishti’s spouse to fulfill the obligation through a transfer of her shares in the company. TRG Pakistan Limited is closely monitoring the situation and will provide further disclosures as required by law.

This development comes as part of the broader market dynamics observed on the Pakistan Stock Exchange. According to information available from the Pakistan Stock Exchange (PSX), stakeholders are keenly observing the ramifications of this legal outcome on the company's stock performance and future operations. TRG Pakistan Limited’s adherence to the court's ruling is pivotal in maintaining investor confidence and regulatory compliance.