JEDDAH: In one of the biggest penalties in the private sector, a court in Makkah has ordered the Ministry of Haj and Umrah to pay a compensation of SR105 million for blocking the services of a company for 14 years consecutively.
The court also granted the Labbaik firm, which specializes in Umrah services, the right to resume operations.
In its lawsuit, the company had stated that it had incurred losses to the tune of SR709 million over the years because its license had been canceled and that the amount should be recovered from the ministry.
However, the court rejected the claim for SR709 million after establishing through an audit that the company had incurred losses to the tune of SR143 million. It finally ordered the ministry to pay SR105 million to the firm.
A court in Riyadh confirmed that penalties stipulated in regulations related to Haj and Umrah companies do not include final cancelation of licenses and that it should be done for a limited period only.
A court in Jeddah too confirmed in a prior ruling that the ministry continues to abstain from the implementation of rulings, violating the Shariah, the law and guaranteed rights.
The case registered consecutive developments, and the Makkah court notified the Investigation and Audit Bureau to question the ministry about its refusal to work within the set regulations.
The court also granted the Labbaik firm, which specializes in Umrah services, the right to resume operations.
In its lawsuit, the company had stated that it had incurred losses to the tune of SR709 million over the years because its license had been canceled and that the amount should be recovered from the ministry.
However, the court rejected the claim for SR709 million after establishing through an audit that the company had incurred losses to the tune of SR143 million. It finally ordered the ministry to pay SR105 million to the firm.
A court in Riyadh confirmed that penalties stipulated in regulations related to Haj and Umrah companies do not include final cancelation of licenses and that it should be done for a limited period only.
A court in Jeddah too confirmed in a prior ruling that the ministry continues to abstain from the implementation of rulings, violating the Shariah, the law and guaranteed rights.
The case registered consecutive developments, and the Makkah court notified the Investigation and Audit Bureau to question the ministry about its refusal to work within the set regulations.
