US judge orders asset transfer in TRG case against former CEO Zia Chishti

A federal court in New York has directed former TRG executive Zia Chishti to turn over assets within 30 days to help satisfy an outstanding arbitration award in favour of The Resource Group International Limited (TRGI), according to a disclosure made by TRG Pakistan Limited to the Pakistan Stock Exchange (PSX) on Friday.

The order was issued on June 18, 2026, by the United States District Court for the Southern District of New York (SDNY) as part of enforcement proceedings initiated to recover the monetary portion of an arbitration award previously granted against Chishti.

In its ruling, the court found that $9.8 million transferred by Chishti to his spouse was subject to avoidance under New York fraudulent transfer laws. Of that amount, the court concluded that $8.7 million had been transferred with actual intent to hinder, delay or defraud creditors.

The court further observed that Chishti's creditors included TRGI, which holds the arbitration award, and the United States Internal Revenue Service (IRS), to which he reportedly owes approximately $10 million in unpaid federal taxes.

The dispute traces back to an arbitration decision issued in early 2025. The arbitrator found that Chishti had violated contractual commitments owed to TRGI by pledging company shares in favour of JS Bank and ordered him to pay $9.1 million to the company.

Under the latest ruling, TRGI may recover assets up to the remaining unpaid balance of that award. The court also stated that the obligation may be satisfied through the transfer of TRG Pakistan shares held by Chishti's spouse, should she elect to do so.

TRG Pakistan said it had received details of the development from its associated company, TRGI, and would continue to monitor the implementation of the court's order while making any further disclosures required under applicable laws and regulations.