Misappropriation of funds: SHC grants pre-arrest bail in CDGK funds case

The bench directed them to join investigation launched by Federal Investigation Agency.

KARACHI: Two men facing charges of illegally transferring one billion rupees from the now defunct City District Government Karachi (CDGK) funds were granted interim pre-arrest bail till June 19 by the Sindh High Court (SHC) on Saturday.

The bench, headed by Justice Aqeel Ahmed Abbasi also directed them to join the investigation launched by the Federal Investigation Agency.

The applicants, Shaikh Muhammad Shahid and Shaikh Muhammad Sabir, had moved the court to seek a grant of bail before arrest in connection with FIR No. 30/2014 lodged under Sections 409, 420, 467, 468, 471, 109 and 34 of the Pakistan Penal Code (PPC) read with the Section 5(2) of the Prevention of Corruption Act 1947 read with Section 3/ 4 of the Anti-Money Laundering Act 2010.

The FIA’s commercial bank’s circle had lodged the case, which stated that the CDGK (now Karachi Metropolitan Corporation) had maintained accounts in different banks and had also invested in various funds at many branches of Allied Bank Limited.

The prosecution alleged that an amount of one billion rupee was invested in the Allied Advance Profit Scheme. The profit on the scheme has to be accrued to the tune of Rs150 million.

The investigation revealed, however, that the amount was deposited in Term Deposit Receipt (TDR), which was subsequently and prematurely cashed in connivance with the KMC officials and officials of the bank’s Civic Center Branch. This led to an embezzlement of the KMC funds.

On Saturday, the applicants appeared in the court. Their lawyer, Muhammad Anwar Tariq, submitted that his clients had directly approached the court because the concerned banking court was lying vacant and that there was apprehension of the applicants being humiliated and arrested by the FIA.

He claimed that the applicants were innocent and had been implicated in the case. He added that there was no evidence with the prosecution that could connect his clients with the alleged offence. Anwar Tariq informed the court that the applicants were willing to surrender before the banking court, but it was vacant. He pleaded to the court to admit the applicants to pre-arrest bail.

After hearing the arguments, the judges granted interim bail before arrest to both applicants subject to furnishing solvent surety in the sum of Rs 0.5 million each with the SHC Nazir.

Notices were issued to the deputy attorney general and the complainant for June 19. The bench directed the applicants to cooperate and associate with the investigation of the case.

Published in The Express Tribune, June 9^th, 2014.