KARACHI: The Sindh High Court (SHC) has issued a landmark judgment in a multi-billion rupee financial fraud case dating back to the 1980s, upholding the sentences of nine convicts while maintaining the confiscation of assets belonging to seven deceased accused. A bench headed by Justice Khalid Hussain Shahani announced the verdict, noting that a systematic financial fraud was perpetrated against the public under the guise of an “Islamic business,” causing billions of rupees in losses to innocent investors.
Breakdown of the Verdict
The court maintained the convictions and sentences of nine living accused to ensure accountability. For the seven accused who died during the pendency of the case, the appeals were abated, but the court ordered that the seizure of their properties will remain intact. Additionally, the court accepted the appeals of four co-accused, acquitting them of all charges. The Official Assignee has been explicitly directed to continue the supervision, recovery, sale, and distribution of assets among the affected investors.
Case Background & NAB Investigation
According to National Accountability Bureau (NAB) Prosecutor Syed Khurram Kamal, the foundations of the scam were laid between 1979 and 1980. Approximately 50,000 citizens invested their life savings into the fraudulent scheme. NAB’s investigation revealed that after the State Bank of Pakistan tightened regulations in 1987, the accused established a private company. The public funds were subsequently channeled into creating 32 subsidiary companies and purchasing dozens of properties under the names of family members and employees.
Decades-Long Legal Timeline
In 1989, the SHC appointed an Official Assignee as a liquidator, following which a total of 49,139 claims worth PKR 3.64 billion were filed by the victims. Following a comprehensive inquiry, NAB filed a formal corruption reference in 2003. Years later, in 2007 and 2012, appeals were finally filed in the High Court against the convictions handed down by the Accountability Court.
Legal Precedent on Confiscation of Crime Proceeds
The Sindh High Court clarified a crucial legal point regarding accountability laws, ruling that the confiscation of properties acquired through crime proceeds does not expire with the death of an accused.
“If the asset seizure is overturned after an accused passes away, thousands of affected investors would be permanently deprived of their rightful dues,” the bench observed.
The court has ordered NAB and other law enforcement agencies to provide full assistance to the Official Assignee in tracing and recovering the remaining hidden assets to ensure justice for the victims.
