US Court: Zia Chishti Must Surrender Assets to Satisfy Arbitration Award, Shares Linked to Him May Be Used

The US District Court for the Southern District of New York has directed former TRG Pakistan CEO Zia Chishti to satisfy the remaining balance of a $9.1 million arbitration award issued in 2025, by payment to TRGI, which could also be made through a transfer of TRG Pakistan shares held by his spouse

The order was issued in enforcement proceedings linked to the earlier arbitration ruling, which found contractual violations related to the pledging and handling of company shares.

In its detailed observations, the court also examined financial transfers of approximately $9.8 million made to Chishti’s spouse, noting concerns that these transactions may have been structured in a way that could hinder or delay creditors, including TRGI and the U.S. Internal Revenue Service, which is owed roughly $10 million in unpaid taxes.

The court further reiterated earlier findings regarding Chishti’s credibility, stating that “much of his testimony” was “frequently lacking in complete candor” and referencing prior judicial and arbitral remarks that described his representations as “often tailored to meet the needs of his own defense” and “iteratively re-molded to fit the facts.”

It also noted that such inconsistencies and misstatements—documented across multiple proceedings—supported a finding of “actual intent to hinder, delay, or defraud creditors.”

The judge additionally highlighted repeated material discrepancies in his testimony and filings over an extended period, noting that the volume of alleged misstatements was significant enough to be described as “cumulative” during trial proceedings.

As part of the enforcement order, the court directed that assets be turned over within 30 days, up to the remaining value of the arbitration award, while also allowing compliance through potential share transfer arrangements involving TRG Pakistan holdings.