MUZAFFARABAD: The Azad Kashmir Mineral and Industrial Development Corporation (AKMIDC) held a ruby and tourmaline exhibition at the Kashmir House, Islamabad, on Monday.

The stones were extracted from Neelum Valley over the last few years.

However the gemstone auction, which was scheduled for Thursday, has been postponed with Prime Minister Chaudhry Abdul Majeed’s approval.

AKMIDC and the Industries and Commerce Secretariat have previously locked horns over the auction, with the latter claiming that the rules for the auction are flawed, and that the gemstones being sold have been not extracted legally by the corporation.

Sources told Dawn that when Chief Secretary Khizar Hayat Gondal forwarded the postponement request to the prime minister, Minister for AKMIDC Sardar Qamaruz Zaman opined against it, and said the Board of Directors (BoD) would take a decision on the matter.

Sources said Zaman also convinced the prime minister to order an inquiry and ‘disciplinary action’ against Secretary Industries and Commerce Mohammad Akram Sohail.

Chaudhry Abdul Majeed reviewed the request and approved the postponement in light of the law department’s opinion.

An AKMIDC official, who wished to remain anonymous, told Dawn that the corporation submitted an exploration report to the Directorate of Mineral Resources upon the expiry of its exploration permit for Neelum Valley’s Chitta Katha mine in 2006, for a mining permit.

However, after the directorate’s inaction regarding the report, AKMIDC went ahead with extractions and subsequent auctions for the next seven years.

The proceeds from the auctions have been deposited in government funds.

The official added that the prime minister also approved the lease of the Chitta Katha mine in favour of AKMIDC.

The BoD meeting on the auction was in progress at Kashmir House, Islamabad, at the time this report was filed.

However the Secretary Industries and Commerce, who is among eight BoD members, was unable to attend as he was at a three-day Labour Conference in Lahore.