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Karachi, June 22, 2016 (PPI-OT):Supreme Court of Pakistan has exonerated the three senior officials of AKD Securities from all the charges levelled against them in the FIR by the FIA in EOBI scam. The Double Bench comprising Justice Umar Ata Bandial and Justice Manzoor Ahmed Malik while issuing detailed judgment the other day said that the action of the FIA was unlawful as the accused persons have not committed any crime and the FIA team has nominated them in the inquiry report after a long time and without any reason.
Furthermore, the two member bench said that the FIA had no jurisdiction to lodge FIR against them without the written complaint by the competent authority. The apex court while turning the petition into appeal has said that “this is an aspect the learned Trial Court would determine”.
The detailed judgment issued by the apex court, the other day, said that “It was clearly mentioned in the FIR that nine brokerage houses have played a role in the acquisition of Amtex shares by EOBI led by Amcap Securities, an affiliate of Amtex and Foundation Securities jointly or severally procured all the shares under sale transactions with the other brokerage houses. However, except the petitioners, none of the proponents in these principal brokerage houses has been arrested indeed as noted above; most of the other nominated accused is absconders.
Neither the petitioners nor AKDS are alleged to have entrusted with any funds or properties of the EOBI. Consequently, it cannot be the petitioners’ case that AKDS or the petitioners committed any offence under Section 409 PPC by misapplying or misappropriating the funds of EOBI. Such allegations if at all can pertain to persons who committed the covert acts of exercising control over and of deciding the investment.
These are the accused nominated at the end of the FIR comprising inter alia, controllers of EOBI, M/s Amtex and M/s Amcap Securities. It was also said in the judgment that if petitioners or AKDS highlighted the inaccurate statements in their reports, yet such errors alone cannot make them liable for offences under the PPC.
It is further said in the judgment that none of the allegations by the prosecution made against the petitioners are cognizable under Section 475 of the Ordinance nor can be prosecuted without a complaint in writing by the SECP or the regulator. Moreover, FIA has no jurisdiction to investigate the said offences under the Securities and Exchange Ordinance 1969.
Consequently, the prosecution case against AKDS and the petitioners for the alleged commission of offence under Section 409 PPC read with Section 109 PPC at present discloses a case of further inquiry. “Resultantly, the petition is converted into appeal and allow the same. The petitioners are granted bail in terms of our short order dated 12 May, 2016”, the judgment said.
The Supreme Court had, earlier this month, granted bail to the three senior officials of AKD Securities, Farid Alam, the chief executive officer of AKD Securities and two directors, Haji Iqbal and Tariq Adam in Employees Old-Age Benefits Institution (EOBI) case.
Counsels of the petitioners, Farogh A Naseem and Arshad Tayyab Ali appeared before the bench on behalf of the accused persons and claimed that the action of the FIA was unlawful as the accused persons have not committed the crime and the FIA team has nominated them in the inquiry report after a long time and without any reason.
The counsels further said that there is no evidence of any involvement of the AKD Securities’ officials in the EOBI-Amtex case registered by the FIA. They contended that it was sheer malice on the part of the FIA that these highly respected individuals were detained for about five months without any proof.
Director FIA, Shahid Hayat has included the names of AKD Securities in the second FIR on the basis of EOBI directors’ statement claiming AKD securities was the lead manager of the M/s Amtex Limited shares in 2010 and a research report in which the exact price of the share at that time was quoted.
The FIA arrested the employees of AKD Securities Limited in the first week of January 2016 in multi-million rupee EOBI scam through enquiry number 34/2014 which was prepared and submitted to the Supreme Court of Pakistan in October 2014.
The stock market sources while contacted said that the mala fide intention by the FIA’s Director Shahid Hayat and I.O, Siraj Panwhar has been proved after the Supreme Court’s decision and the Ministry of Interior should take stern action against him for misusing the powers and defaming the present government and Minister of Interior, Ch Nisar Ali Khan.
For more information, contact:
Shahid Hussain Kamboyo
Public Relations Officer
Supreme Court of Pakistan
Tel: +92 51 9204184, 9220581
Fax: +92 51 9213452
Email: mail@supremecourt.gov.pk