Investors Sue NPFL for Rs128 Million Over ‘Duress’ Claims

The Supreme Court is set to hear two major legal challenges against the National Property Fund Limited (NPFL) as 29 investors demand a total of Rs 128,176,456 in unpaid capital and moral damages.

The cases, scheduled for a hearing on 12 February 2026, center on allegations that investors were forced “under duress” to accept significantly reduced payouts following the 2015 collapse of the BAI Group.

The Financial Fallout

The claimants represent former subscribers of two financial products: Super Cash Back Gold (SCBG) and the Bramer Assets Management Fund (BAM).

Both groups maintain that their investments had been formally approved by the Financial Services Commission (FSC) prior to the 2015 crisis, which was triggered by the revocation of Bramer Bank’s licence.

The legal action is split into two distinct filings:

• SCBG Claimants: 13 investors seeking Rs 46,341,597. They report having invested Rs 70,329,578 but claim a balance of Rs 24,841,597 remains unpaid, alongside a request for Rs 21.5 million in moral damages.
• BAM Claimants: 16 investors seeking Rs 81,834,859. Out of an original investment of Rs 103,281,892, they allege Rs 43,334,859 is still owed, with an additional Rs 38.5 million sought for moral prejudice.

Allegations of Economic Pressure

At the heart of the dispute is a July 2017 communiqué issued by the NPFL.

Investors allege the fund announced it could no longer provide full reimbursements, instead offering a reduced settlement of 40% to 50% of the remaining capital.

The plaintiffs contend they were given an ultimatum to accept these terms by 31 August 2017 or forfeit any repayment at all.

The investors argue they signed the resulting agreements under intense economic pressure and “under duress,” noting that the contracts contained clauses specifically designed to prevent future legal contests.

“The notion of unfulfilled ‘legitimate expectation’ of full reimbursement is central to the argument,” the BAM investors noted in their filing.

Legal Representation

The 29 investors are being represented by counsel Mr Nawaz Dookhee and Mr Kaviraj Bokhoree (Attorney).

The Supreme Court’s review in February will determine the validity of these claims of financial coercion and whether the NPFL is liable for the outstanding millions.

Source: Defi Media