TRANSPARENCY INTERNATIONAL-PAKISTAN

171h January, 2018

Justice (R) Javaid Iqbal, Chairman, National Accountability Bureau, Attaturk A venue G-5/2, Islamabad.

4-C, Mezzanine Floor, Khayaban-e-lttehad, Phase VI! Defence Housing Authority, Karachi. Tel: (92-21) 35390408, 35311897-8, Fax: (92--21) 35390410 E-mail: ti.pakistan@gmail.com Website: www.transparency.org.pk

TL1811701/3A

Sub: Complaint against SECP/FBR/Building Authorities for not Taking Action to Implement Section 456 of the Companies Act, 2017, Acceptance of Advances by Real

Estate Companies Engaged in Real Estate Projects.

Dear Sir,

Transparency International Pakistan request the Chairman NAB to kindly look into the role of SECP, FBR, Sindh Building Control Authority, LDA & CDA, that is deliberately not protecting the rights of public on their investment in Real Estate Projects.

A complaint has been received in which typical illegal process by a builder is reported.

The complaint is summarized below;

1. Saima Builder Karachi has been in the field of real estate development since 1985 and has claimed to have executed over 40 projects. They have been misguiding public publicizing the projects as those of Saima Builder, though for many projects, the owners of those projects claimed to be that of Saima Builders is not available in SBCA, SECP or FBR records. As per Sindh Building Control Ordinance, 1979 . Karachi Building Town Planning Regulations, 2002, Public Sale Projects, Section 5 Rule No 5-1.1 no objection certificates NOC for sale of units in buildings is a must for advertising in newspapers and electronic media. Project Saima Downtown Hyderabad is not given a NOC by SBCA. Annex-A.

2. Many Builders use their name for deceiving public, viz. Saima Group, Royal Group etc. but their names are not included in SBCA, FBE, SECP records. One such example which does not have names of Directors of Saima Group, is Saima Royal Residence, a Rs. 5 Billion 21 Story Building, NOC for sale & advertisement of residential flats I showrooms at above noted project has been issued vide No. SBCA/DD-(D-II)/932/Revised ADV-75112015, dated: 22-06-2015 to Mr. Amanullah Partner of M/s. S.A. Enterprises Builder & Developers Builder Lie. No. BL-2869, having its office at Plot No.118/F(Part), Stadium Road, Opp. Askari-IV, Gulshan-e­Iqbal, Karachi. Annex-B.

3. Directorate General oflntelligence and Investigation Inland Revenue (IR), FBR in April 2016, unearthed the biggest tax evasion case of a builder/developer in the

history of Pakistan involving approximately tax liability of Rs. 58.8 billion calculated on total tax concealment of Rs 117.6 billion. Annex-C.

A NON-PARTISAN, NON-PROFIT COALITION AGAINST CORRUPTION Donations exempted from tax U/S 2 (36) (c) of I. Tax Ordinance 2001

~TRANSPARENCY .::;/INTERNATIONAL-PAKISTAN Continuation Sheet No ......... .

The complaint has been examined by TI Pakistan, and based on its past efforts to safeguard public interest, it appears that the complaint is correct.

The Real Estate sector is being regulated in UAE, India and most countries of the World, with deposits of buyers to be kept in Escrow Accounts to be spent on the project only, to protect buyer's rights & interest. Real Estate sector in Pakistan was also being regulated in Pakistan by SECP from 2003, vide the Notification No. SRO 954(1)/2003 dated October 1, 2003. Annex-D.

But after the new government came into power in 2008, SECP in September 2009, withdrew SRO 954(1)/2003.

SECP on 19th January 2012, in the TI Pakistan's Suo Mota HRC No 38671-S/201 L informed the Supreme Court, Annex-E.

b). That the Companies Ordinance, 1984 is an entity-based law. Accordingly, the real estate business is not being regulated by the Commission. Moreover, under the Constitution of Pakistan, this sector falls within the ambit of the Provinces and is not a Federal subject. Provincial governments have requisite legal framework and administrative machinery for the regulation of the housing and real estate societies/companies;

c). That a Notification No. SRO 954(1)12003 dated October 1. 2003 was issued to bring the advances taken by real estate companies, automobile or other companies within the ambit of the Companies (Invitation and Acceptance of Deposits) Rules, 1987 (the rules). However, the Commission, in September 2009, and with the approval of the Federal Government, withdrew the aforesaid amendments made in the Rules as these were found impracticable and the Commission faced major impediment in their implementation owing to the fact that 'advances' in the real estate sector are actually pre-payments and not considered 'deposits; '.

However, the enactment ofthe Companies Act 2017 by the parliament in June 2017, proves & confirms that the SECP withdrawal in 2009 ofSRO 954(1)/2003 dated October 1, 2003 was wrong. It was withdrawn on the pretext that under the Constitution of Pakistan, this sector falls within the ambit of the Provinces and is not a Federal subject, was only a lame excuse given to the Supreme Court of Pakistan.

In the Companies Act, 2017, Section 456, which relates to real estate companies engaged in real estate projects, has not been made effective, by inserting the following provision in Subsection (3) of Section (1) ofthe Act. Annex-F

"Section 456 shall come into force on such date as notified by the Federal Government

or an authority or person authorized by it. ':j/

~TRANSPARENCY ~ INTERNATIONAL-PAKISTAN Continuation Sheet No ......... .

Protecting from those builder mafia who have defrauded millions of innocent people in Pakistan is the prime responsibility of state. The Companies Act, 2017 Section 456 is an excellent step to safeguard the life-saving investment of people of Pakistan in real estate.

The Chairman is requested to examine the complaint as per para 1-4 above, and if FBR, SBCA are not taking action to protect public interest, as well as recovery of billions of rupees taxes, action may be taken under NAO 1999.

Also detailed inquiry may be conducted on SECP role from October 2003 to September 2009 as Royal Group, Saima Group, DHAs Karachi/Lahore/Rawalpindi, Bahria Town, Eden Garden Group etc, have launched many public sale projects during this period and SECP did not act to get them registered with SECP. And also why SECP has not pursued the issue of the notification since last 7 months to make effective Section 456 of Companies Act 2017, and if possible NAB may act to facilitate the issue of the notification of the Federal Government, for Section 456 to come into force with immediate effect.

Transparency International Pakistan is striving for across the board application of Rule of Law, which is the only way to stop corruption.

With ]{.egards, ~ --~- .

C ~---~ ~/ ·~~---s lMuz~ .----

~ Encl: Annex-A, B, C, D, E and F

Copies forwarded for the information with request to take action under their mandate to:

1. Secretary to Prime Minister, Islamabad. 2. Registrar, Supreme Court of Pakistan, Islamabad. 3. Chairman, SECP.

H¥DtRA8~0

This is the first time that Saima Group is introducing its project in Hyderabad which is located on the main bypass Hyderabad. Currently they are offering residential banglows of 120. 160 & 240 sq yards. The prices for the banglows are expected to be as follows:

120 sq yards at Rs. 5,900,000 160 sq yards at Rs. 8, 900,000 240 sq yards at Rs II ,900,000

Booking for these residential banglows have been started and it is hoped that soon booking of commercial plots will also start with easy installments plan.

Saima Builders has not shared the details of the installment plan but it is expected that 3 or 4 year easy installment plans will be given. The cost of apartments & banglows in Saima are greater than other projects because of the quality & trust that is attached with the name.

No details of commercial plots were provided by the builders but history of their residential project indicates that commercial flats & plaza will also be part of this project.

Saima Builders started their tirst project in 1985 and so far have been successful in completing 40 projects which includes shopping malls, flats, apartments, luxury villas and trade centres. Because ofthese multiple options of residential plots & commercial shops Saima gained its popularity. Some of the successful projects of Saima Group are:

1. Saima Arcade 2. Saima Garden 3. Saima Castle

4. Saima Terrace 5. Saima Square 6. Saima Height 7. Saima Palace 8. SilverLine Apartment 9. Saima Garden I 0. Saima Springfield 11. Saima Avenue 12. Saima Towers 13. Saima Heaven 14. Saima Park View 15. Saima Pride 16. Saima Classics 17. Saima Trade Tower 18. Continental Trade Centre 19. Saima Classics 20. Saima Shopping Centre 21. Saima Centre 22. Saima Villas 23. Saima Drive-in 24. Saima Shopping Mall 25. Deans Trade Centre 26. Lavish Mall 27. Saima Flower 28. Lavish shopping Mall 29. Falak Tower 30. Saima Parri Mall 31. Belle View Tower 32. Saima Mall & Residency 33. Saima Sarena 34. Saima Bridge View 35. Viney Mall & Residency 36. Saima Green Valley 37. Saima Arabian Villas 38. Saima Royal Residency 39. Saima Arabian Apartment 40. Saima Parri Tower

For more details please contact Saima Hyderabad at the following numbers:

Hyderabad Contact No: 0331 1172462, 03 111172462 Karachi Phone Number: 021-34825516. 021-34825517. 021-34825518 Email: info@saimabuilder.com Website: www.saimabuilders.com Address: Plot# 118F- (Part). Stadium Road. Opp. Askari IV, Gulshan-e-Iqbal, Karachi

SINDH BUILDING CONTROL AUTHORITY PUBLIC NOTICE

Name ofthe Project: "SAIMA ROYAL RESIDENCY"

Plot No. ST-11, (FL-B), SURVEY NOS. 573 TO 594, BLOCK-02, SCHEME-24, GULSHAN-E-IQBAL, KARACHI

The Sindh Building Control Authority hereby informs general public that

Revised NOC for Sale & Advertisement of Residential Flats I Showrooms at above

noted project has been issued vide No. SBCA/DD-(D-11)/932/Revised ADV-75112015,

dated: 22-06-2015 to Mr. Amanullah Partner of M/s. M/s. S.A. Enterprises Builder &

Developers Builder Lie. No. BL-2869, having its office at Plot No.I I 8/F(Part), Stadium

Road, Opp. Askari-IV, Gulshan-e-lqbal, Karachi.

The Project consists as approved for Basement (Showrooms & Parking)

+ Ground Floor (Showrooms & Parking) + 1st Floor (Showrooms & Parking) + 2"d

Floor (Parking & Recreational Area)+ 3rd to 2151 Floor (Flats) only.

As per approved Revised Proposed Building Plan Vide letter

No. SBCA/Gulshan Town-1/DD(sch-24)/2014/7344/7344/821/187/162

Dated: 16-12-2014.

Proposed date of completion: 31-03-2017

License Architect Name: Mr. Muhammad Raza Abbas

Mr. Najam Bilal License Engineer Name:

Units offered for sale are as under: -

Flat Category Floors No. of Covered Area Units in Sq.ft (Each)

A 3'ct To 21st 76 1157.75 A-I 3'd To 21st 76 1135.50 A-2 3'd To 21st 38 1432.88 B 3'd To 21st 152 1173.00

B-1 3'd To 21st 76 1087.75 c 3'd To 21st 190 821.00

SHOWROOMS Basement

01 47683.62

SHOWROOMS Ground

01 24046.50

SHOWROOMS 151 Floor 01 24108.312

Page 1 of2

(Lie. No. AL-01-655)

(Lie. No. SE-06-15)

Unit Price Rs. Each

Rs.56,27 ,822,75/-Rs.55, 19,665,50/-Rs.69,65,229,68/-

Rs.57,0 I ,953/-Rs.52.43,803, 75/-

Rs.39,90,881 /-@Rs.l5,000/-

Per Sq.ft @Rs.30,000/-

Per Sq.ft @Rs.20,000/-

Per Sq.ft

S.No. 1 2 3 4 5 6 7 8 9 10 11

Above mentioned prices does not includes documentation I Utilities Connection Charges/ Floor, Comer, Road Facing Charges etc. Extra Charges will be as followed. Documentation Charges to be clearly mentioned in schedule of payment as per clause 5-1.13 ofKB & TPR-2002 (amended up to date) Comer Charges= 2% (for general public). West Open Charges= 2% (for general public). Transfer fee will be 2% of unit price. Payment should be made to the builder strictly in accordance with the following schedule of payment based on stage of construction at site.

SCHEDULE OF PAYMENT

Stage of Construction Installment On Booking 5% On Completion 5% On Completion of Plinth of concerned Block 5% On casting of Column of concerned Block 5% On Casting of Roof Slab of concerned Unit I Floor 5% On Completion of Block Masonry of concerned Unit I Floor 5% On Completion of Sanitary & Plumbing work of concerned Unit I Floor 5% On Completion of Plaster of concerned Unit I Floor 5% On completion of Finishing of the concerned Unit I Floor 10% On Possession on concerned unit 10% Balance 40% in Equal quarterly installments. 40%

SBCA further advises General Public to sign a written Agreement with the builder I developer at the time of booking on Rs. I 00/- Stamp paper in accordance with MODEL AGREEMENT of SBCA as per clause ( 4) Section 12 of S BC0-1979 up to date, within 30 days of booking of unit and before issuance of Allocation letter. The agreement will be got counter signed and witnessed by the authorized REPRESENTATIVE OF ABAD within 15 days. Otherwise Builder will not allowed to collect further payment I installments as per approved scheduled of payment otherwise SBCA will not act an arbitrator in any dispute between the Builder I Developer and Allottee.

Copy of Model Agreement may be obtained from Public Counter, SBCA Civic Centre Ground Floor, annexe building or may be down loaded from SBCA web site www.sbca.gos.pk.

SINDH BUILDING CONTROL AUTHORITY Design Section, 41

h Floor, Annexe Building Civic Centre, Gulshan-e-lqbal, Karachi.

Page 2 of2

Annex-C

BUSINESS RECORDER

Founded by MA Zuberi

Bh::gest-ever tax evasion case of builder unearthed

Directorate General of Intelligence and Investigation Inland Revenue (IR) has unearthed the biggest tax evasion case of a builder/developer in the history of Pakistan involving approximately tax liability of Rs 58.8 billion calculated on total tax concealment of Rs I 17.6 billion. Sources told Business Recorder here on Wednesday that the Karachi based builder/developer, one ofthc biggest and powerful developers in the real estate sector. is allegedly involved in massive concealment of income.

The analysis of 4 banks' data, inspection of records and detailed scrutiny of data exposed concealment to the tunc ofRs 117.6 billion. T'his is the biggest tax concealment case in the history ofFBR within the real estate sector and recovery of the evaded amount may result in contribution of approximately Rs 58.8 billion in the national kitty. The directorate has detected total concealment of Rs 117.6 billion. tax Rs 29.4 billion (a) 25 percent average. Penalty 100 percent oftax comes toRs 29.4 billion. Total tax liability comes to

approximately Rs 58.8 billion. The quantum of tax evasion is so high that only one mega case could result in sudden increase in revenue collection of the FBR.

FBR officials said that the credit definitely goes to Khawaja Tanveer Ahmad, a top officer of Inland Revenue Service, who is also Director General of Intelligence and Investigation Inland Revenue, who supervised/monitored and pleaded case despite immense pressure tl·om powerful groups and lobbies. However, Karachi based courageous officials of the agency completed the investigation against this biggest builder/developer of Karachi.

Directorate C1eneral of I& I IR has taken a historic initiative to unearth massive concealment of income by an influential real estate developer of Karachi. Through analysis and investigation of records. preliminary data exposed concealment to the tune of billions by the said real estate developer. Such actions against big sectors have pointed towards the seriousness of the agency to assist the FBR in achievement of the assigned revenue collection targets for 2015-16.

Keeping in view sensitively of some big cases. the agency has completed the legal formalities oftaking prior permission of high-ups and availability oCirrcf'utahle evidence for taking action against the units. For the first time in the history of FRR. the Directorate General of Intelligence and Investigation Inland Revenue has continued its investigations in real estate sector to ensure recovery of concealments involving billions of rupees. As a result of these actions, the Directorate General of Intelligence and Investigation IR has emerged as top investigative agency in detection of tax frauds in the country, sources maintained.

Details ofthe case revealed that the credible information was received by the Directorate of I&l-IR, Karachi, from field visit that the business activities of a proprietor of builders and developers or Karachi are not commensurable with his declared versions. Reportedly, the

proprietor of builders and developers was executing more than one dozen construction projects under various titles. Each project was being executed under the um brei Ia of a separate AOP. with different pminers and terms of conditions, to hide income and evade due taxes. In addition a significant number of investors have made investments in these projects and retrieval of such information would be useful in Broadening of Tax 8ase (BTB) activities.

Accordingly, action under section 175 of the Income Tax Ordinance. 200 I was carried out on the principal business place of the taxpayer located in Karachi. and the team resumed relevant record f(Jr further scrutiny, On the basis of information, relating to bank accounts, letters\\ ere written to the Mangers of relevant Bank I 8ranches for provision of bank information in respect of various bank accounts associated with taxpayer. Perusal of bank statements has endorsed the contention of the Directorate.

Realising the establishment of concealment. in his case. the taxpayer approached the High Court of Sindh, Karachi, and tiled civil suit against the action taken by the department. The court has passed restraining order in the case on April II, 2016 and directed that no further proceedings can be carried out in the case. T'he directorate will represent the case before the Iligh Court of Sindh, sources added.

Copyright Business Recorder, 2016

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[AS:PASSBD BV'THE MAJLI&~OORA(PARLIAMENT}]

An

ACT

to reform and re-enact the law relating to companies and for matters connected therewith

WJ.mREAS it is expedient to. reform company law with the objective of facilitathlg corpora~!;J.pn and .PIOml)t\n:g qe.velopment of cot:}:)orate sector, e~~~~e of:~~~~,and~~ectl::ont~ tneans in conduct of business and. re~tion tJ:'i'eteor~ ~~g coip~t~ e.nti.ties for protecting interests of shareholders, creditors, ()ther $takeholders and general pub~c, inculcating prinCiples of good. gov~~Qe and: safeguardil:lg minority interests in corporate entities Q.Jld pro)li~ .. afi alterruife mechanism for expeditious resolution of corporate disputes and matters atisingout of or connected therewith;

It is hereby enacted as follows:·

PART I

PRELIMINARY

1. Short title, extent and commencement.- {1) This Act may be called the Companies Act, 2017.

(2) It ~tet;lds to the w~ole. of Pakistan.

{S).l'hi$ ~Ct·$hall CO:Ine ~tQ force at once, .e~cept section 456 which shall co~e mto :force on $qch ~te:~alf'the:!edetal G6vernment or an authority or person authorized by it may, by notlheati<:>nin .the official Gazette, appoint.

2. Deftnltlona•- {1) In this Act, unless there is anything repugnant in the subject or contexk

(1) "advocate" shall have the same meaning as assigned to it in section 2 of the Legal Practitioners and Bar Councils Act, 1973 (XXXV of 1973);

(2) "alter" or "alteration" includes making of additions or omissions without substituting or destroying IP.ain scheme of the document;

(3) "articlea• mean the articles of associati,on of a company framed in a.ccordanc~,With. the company law or this Act~

(4) ~._,aocla~~cJ ~9W.P~~·~.:an~:t~~l$ocia.ted undertakings" mean any two at more q<)mp~s or'unde~gs, or a company and an

469

455. FWna of documentS through intermedlarles.-{ l) A person may. for the purpose of. filing of documents under this Act, avail services of intermediary as may be $J)eeifieu.

(2.) An int~ 1P:~l to.~royide services in terms of sub· .CCtion {ll :tnU$tpossess .tb~'te;qtd!ife.~jfication 'and be registered with the Commimob ·in the tnanner 'as maybe ~pecified.

(l) Th'O.regisltation.;as ~~ under this section shall be liable to

be ~~ll~ by the CollUnis$iott.Qi1. rucli:.gr.ounds. and in such manner as may be speein6a.after providing'an opportUnity of\Jciug heard.

. }!~,!:4;l>t1lll4Jll~1•engjlg~ in f(~" . . . ' coriiainCditl'tfUS Act or any 9Ui~ law, IllY Company w~ invite$ advances 1rom public for real estate p'rt>ject. wn Comply With ilit provisions of this section in addition ro those provided in the other provisions of this Act

(2) A company engaged in ~I C$~te project sllall-

(a) not announce any rCllll estate project, unless it has obtained the approval of the Commission an~ all necessary approvals, permissions orNOC. ete:t cofthe· ooncemed authorities required as per ap:plicable genet~. special and local laws. having jurisdiction over area tltl,der which the real ~tate project is being devoloped or underta,keti to the.satisf'ution of the Conunission and subject to such tdditi()tlal d~l~~'~ements as may be notified;

(b) not'~~·,~Y MbilC!ltibn or.'adv~ement of real estate projects, unl~ it .'bas obtained 'fM ~approval of the Commission and all neecssazycapproval,s,.'permission.S or NOCs ete,.. oi the. concerned authorities··~. Q ·.per: ,appli~bte genl\l"'l, special md local laws. J?,a~ junsdiction ov~ area under which the rea.l estate project is belni developed or \Uldertaken to the satisfaction of the Commission ,aild. subject to such additional disclosure requirements as may be notified;

(o) notacceptany.advanees or detpo$itll in any form whatsoever against any bookin& .to sell. or offer for .sale or invite persons ro purchase any l@d, apartment or building. as the case may ~. in any real estate project or part of it, unless it has obtained the approval of the Commissjon and al~ necessary approvals, permissions or NOCs, of the concerned au~orities.~tte'd as per applicable general, special and J~.la,w,.,~vill~J.~C)P. oy~:~ unde~ which the real estate.project:U,bejng.develo~or~en to the satisf~~Ction of

470 {PA!!.T [

the Cominissiou and subject to such addi\ionlll disclosure requirements as maybe notified;

(d) not accept a S\UJl a.ga,itl$t . purchase of the apartment, plot or building{as the ease may be, as an adVllflce payment from a persou without first entering into a v,rritten.4!greelnent for sale with such person except nominal fee for application:

(e) maintain and preserve such books of account, records and documents in the manner as maybe specified;

(f) deposit any sum obtained from the allottees, from time to time, in. a separate escrow account o~ed in the. name ofthe project as may be specified;

(g) comply with at)y dirtclioPS notified by the Commission and accounung framework~ may be •notified; and

(h) do or. not tO domtya~ot~~(vicyas may be specified.

{31 For theJ~llijX)ses of;this s®ti?n the eScrow accounts shah be dedicated etclusively for ~g ol,\f. the proj~. and no l!ttachm~t shall be i~d on. the paymt:~nt of stich escrow:acoounts for the benefit of creditors of the real estate COltJPany excejit·for the purpose ofproject and the real estate company shall recognize its income in accordance with International Financial Reporting Standards notified by the Commission.

(4) The Commission shall provide copy of any returns or information submitted by real estate company free of cost to the concerned authority, on their request. to enable such authority to regulate real estate project under its jUrisdiction inaccordll.nee with the applicable laws.

(5) The conditions \ajd,dpwtl :qn<ler this section sh,llll be in addition to ~d not in derogation \)f reqUirollletit of law and eo~cmled authority unc.\er whose jurisdiction .the p~j~(is :be~ .l.IJld~~ b,Y the rea,l .. es.~ .. ®mpany shall co~tinuetp ~x~seifs.l.~~~~tr~ll;rotUmcr provi~ in the releVant law.

( 6) lu}y; l),~{$0n2'W'hq ~fl~Y~Jl~ the provisio~ of this s~tion shall be guilty of ail9tfenoe~ltioh:ia Uaijle tO'tpenaffii ofleVe13 <ln'ihe standard scale.

Explanaiions.-Potthe pUrposes of'this section tbe-

(i) exp~ession "r~al .estate project" shall include projects for the development and construction of residential or commercial

PAli I] THE 0~ OF PAI{lST~. l)XTRA., MAY 31, 2017 471

buildings or compounds and shall not include other construction project;

(ii) expression "authority'' shallil)Cl\lde authority created or prescribed un~et: any law which has. powers to gjve permission for plmuung and development of real estate prQject In speeific area.

457. Acrlculture Promotion C.omll'nies.-(1} Notwitllstanding anything contained in this Act or iPl)' othef.lawfe~r lht'tirne being in force, any person, having i!S l'tincipfij,liJle.of ti~~~~1aue4 to;ptM~ for agriculfuro prutn9tion or ~giN:ptOdu~'as colla:tem· · ~~n any·aetivit;y connected with or rel~tef«s any JlrOdl:J~• o( ·~ . . a ' ~Ctivi.ties I\11\Y establish Agriculture Promotion Qpm~y \lndtl'thlS s~ctlonip s!ich form and manner and subject to such terms, conditions and litni.tations as may be specified.

BxplanatioJa.-For the purpose of this section:

(a) "Agriculture Promotlo11. Company" includes a Producer Company or a Collateral Management Company involved in Prod®e or any other company or class of companies or corporate body or any other entity as the concerned Minister-in-Charge of the Federal Gov~t may, by notification in the official Gazette specify as Agriculture Promotion CQmpany under this section;

1\'bm a~ulture (i!1cluding.anirnal ,;re.:.veg~~on, bee . raising and );. ot Ubni, any ,Qthet acti\fity or ·~ bus~e~S; qr.····

(ii} !mY pi<ld~ct te§\ll~& .. tl:snn any of the aQove activities, ~ludlng\ly~l,Wt$.;Qf:~.products;

(i,ii) aliy ·actiyiW,Which.~~jirten4ed to i.ncrease the production of anything te(errca"to Jn abOve sub-clauses or improve the quality thereof;

(2) Prod1lcer Compan.y ·!lle<U\S any company, with or without share capital, formed un&r this seeti.!>n by fat:mers IUld engaged in any a~tivity connected with or related to any PrOduce including .the following matten-

(a) production, harvesting, ... p~urement, grading, pooling, handling, marketing, s~l,1~ · e~J] ~~ p!Oduce, of the members or import of goods or ~erVicesJor.th~ir·~~~;