LAHORE: The Lahore High Court on Tuesday questioned subsidy given to sugar industry by the Punjab government exercising its discretionary powers and directed the advocate generalto apprise the court of legal position of the subsidy given to any sector.

Chief Justice Syed Mansoor Ali Shah took notice of the government`s action hearing petition of Hunza Sugar Mills against non-provision of 10 per cent subsidy on sugar exports announced by the government.

Counsel for the mills argued that the government had been showing discrimination in implementation of the subsidy. He said the government stopped subsidy of his client (mills) without any reason.

During the hearing, Chief Justice Shah questioned the counsel under what law the government announced subsidy for sugar industry and ignored other sectors.

Under what criteria the government found the sugar industry entitled to have the subsidy from public money, the chief justice further asked the counsel.

The sugar mills` lawyer argued that the government announced the subsidy in the light of recommendation of Council of Common Interests (CCI). He objected that the court was digressing from the main case.

However, Justice Shah observed that the court was fully conversant with its direction.

The chief justice directed the government`s and the petitioner`s counsel to come up with arguments on the legitimacy of the subsidy given under the discretionary powers. The hearing was adjourned for next week.