Sindh High Court Upholds Convictions of Nine Accused in 1980s Financial Fraud Cases
KARACHI: The Sindh High Court has upheld the convictions of nine individuals in long-running financial fraud references dating back to the 1980s, dismissing 14 appeals filed against their sentences.
In its ruling, the court also terminated the sentences of seven convicted individuals who had passed away. However, it ordered that the confiscation of their properties remain in effect, stating that assets acquired through criminal activities remain subject to forfeiture even after a convict’s death.
The court accepted the appeals of four accused persons and acquitted them of the charges.
During the proceedings, Justice Khalid Hussain observed that the fraudulent scheme, carried out under the guise of legitimate business activities, caused losses worth billions of rupees to the public.
A prosecutor representing the National Accountability Bureau (NAB) informed the court that the foundations of the fraud were laid between 1979 and 1980. According to NAB, influential individuals used their social and political influence to attract investors, leading approximately 50,000 people to deposit funds into the scheme.
The prosecutor further stated that when regulatory oversight by the State Bank of Pakistan intensified in 1987, the accused established a private company and used public funds to create 32 subsidiary companies. They also allegedly purchased dozens of properties in the names of family members and employees.
According to NAB, the scheme collapsed in 1988, prompting investors to demand the return of their money. In 1989, the Sindh High Court appointed an Official Assignee as liquidator to manage the recovery and distribution process. Claims worth Rs364.99 billion from 49,139 investors were submitted to the Official Assignee. Following an investigation, NAB filed a reference in 2003.
In its judgment, the court noted that the prosecution had successfully established, through revenue records and other evidence, that funds had been collected from members of the public. The court emphasized that under accountability laws, the confiscation of assets obtained through criminal conduct does not cease upon the death of an accused.
The judgment stated that if confiscation orders were revoked after a convict’s death, affected investors could be deprived of their rightful claims and compensation.
The court directed the Official Assignee to continue overseeing the recovery, management, sale, and distribution of assets among investors. It also instructed NAB and other relevant authorities to assist in identifying and recovering additional assets linked to the fraud.
The appeals had been filed in 2007 and 2012 against an earlier accountability court verdict.
