ZUMMRUD KHAN, MANAGING DIRECTOR, PAKISTAN BAIT-UL-MAL vs GHULAM
The petitioner sought the cancellation of post-arrest bail granted to respondent No.1 by the Special Judge Central, Rawalpindi, in a case involving F.I.R. No. 4 registered under sections 420, 409, 468, 471, and 109 of the Pakistan Penal Code 1860, read with section 5 of the Prevention of Corruption Act 1947. The allegations pertained to the systematic preparation of fake medical treatment cases for Hepatitis-C patients under a financial assistance scheme of Pakistan Bait-ul-Maal, resulting in massive embezzlement of public funds through uncrossed cheques and in violation of established rules. The core legal question was whether post-arrest bail should be cancelled in cases of heinous and premeditated economic crimes involving public funds, even if the offences do not fall squarely within the prohibitory clause of the relevant procedural law. The Lahore High Court held that notwithstanding the non-application of the prohibitory clause, the gravity, intricate planning, and heinous nature of the crime—which deprived poor patients of essential medical funds—warranted the cancellation of bail. The court laid down the principle that courts may cancel bail in cases of grave financial crimes and systemic corruption where the accused plays an active role in looting the public exchequer, regardless of whether the statutory prohibitory clause is attracted.
- Whether post-arrest bail can be cancelled in cases involving heinous economic crimes and embezzlement of public funds even if the offences do not fall within the prohibitory clause of section 497 of the Code of Criminal Procedure 1898?
- Can an accounts officer escape criminal liability for financial fraud by claiming to act merely as a postbox or by restricting their role to initialing cheques?
- Does the systematic misappropriation of funds meant for poor patients suffering from epidemic diseases constitute sufficient ground for the cancellation of bail?
- Section 420, Pakistan Penal Code 1860
- Section 409, Pakistan Penal Code 1860
- Section 468, Pakistan Penal Code 1860
- Section 471, Pakistan Penal Code 1860
- Section 109, Pakistan Penal Code 1860
- Section 5, Prevention of Corruption Act 1947
- Section 497, Code of Criminal Procedure 1898
ORDER
' IJAZ AHMAD, J.---The petitioner seeks cancellation of by learned Special Judge Central, Rawalpindi, vide order, dated 29-3-2010 to Ghulam Syedian Rizvi/respondent No,1, one of the accused in case F. I. R. No, 4, dated 2-2-2010 registered under sections 420/ 409/468/471 and 109, P.P.C. Read with section 5 of the P.C. Act-II of 1947, at Police Station F . I . A . Crime Circle, Rawalpindi.
2. The allegation contained in the F.I.R. Is that Muhammad Qamar, Dispenser of Holy Family Hospital, Rawalpindi/co-accused managed to prepare fake cases of Hepatitis-C patients worth millions of rupees and presented the same before the Managing Director Bait-ul-Maal for approval. On enquiry, these cases were found bogus. Initial scrutiny of medical treatment cases uncovered a pandora's box of ill-deeds of the racket. Rs.83,16,400/- were found embezzled till the lodging of the F.I.R.
3. It is contended by learned counsel for the petitioner that Pakistan Bail-ul-Maal launched a scheme for providing financial assistance all over Pakistan to the deserving poor patients for treatment of Hepatitis-C and other epidemic diseases; Muhammad Qamar/co-accused, Dispenser of the Holy Family Hospital, Rawalpindi used to procure CNICs of the people and prepared fake patients' cases, which were placed for scrutiny before respondent No,1, the Accounts Officer of the Holy Family Hospital, Rawalpindi, then they were forwarded to the Medical Superintendent/ co-accused, and thus, the hospital officials and owners of the medical stores conjointly misappropriated a huge amount that till-today has mounted to Rs. 1,40,00,000/ which was withdrawn through 40-uncrossed open cheques; and that 15-persons whose CNICs were misused appeared before the I.O. Concerned and stated that they never applied for P.B.M. Finance Assistance for their treatment. The learned counsel for the petitioner draws attention of this Court to the Instructions issued for the Government Hospitals to avail assistance from Bait-ulMaal for medical treatment, which postulate the constitution of a Committee comprising of the concerned Consultant, Budget and Accounts Officer (who is the respondent No,1), the pharmacist and the Medical Social Officer; that rules 57 and 157 of the Revised Treasury Rules for the year 2007 relate to responsibility of respondent No,1 and mode of payment through cheques drawn in favour of the Corporate or Local Bodies Firms or private persons for payment of Rs.200/- and above. Such cheques have to be crossed in favour of the payee. The alleged transaction through uncrossed cheques' betrays, carefully meditated an act designed to bring a fiasco to the P.B.M. Finance Scheme and to slash the public exchequer; and that some of the cheques were executed in favour of the pharmaceutical firms which did not exist at all.
4. On the other hand, this petition is opposed by the learned counsel for respondent No,
1. He contends that the respondent has played no role in the alleged embezzlement of the money. His function is to simply, initial the cheques and he acts only as a postbox between the Accounts Clerk, who prepares the cheques, and the Medical Superintendent; and that there is no allegation of real financial corruption against respondent No,1; that once the bail has been granted it should not be cancelled in ordinary circumstances and nothing has to be recovered from possession of respondent No,l.
5. I have heard learned counsel for the parties and have also gone through the record. The case is hand is not that of an individual wrong or delinquency. The complainant had launched a scheme to help the poor patients of Hepatitis-C and other epidemic diseases. All the accused acting in premeditated style and nicely arranged a combination have not only conjointly looted the public exchequer but have also deprived the languishing poor patients of their last hope for being treated for high cost epidemic diseases and have, thus facilitated the proliferation of these horrific diseases. Respondent No,1 and other officials of the Hospital in gross violation of the procedure, made payments against the fake memos. The required medicines could only be purchased by the recommended medical stores from two specified Pharmaceutical Companies, which provided the medicines at subsidized rates to Bait-ul-Maal patients. The accused made fake purchases from unauthorized dealers. Although the offences mentioned in the F.I.R. Do not fall within the prohibitory clause of section 497, Cr.P.C. Yet the crime committed by respondent No,1 and co-accused is so heinous, intricately woven, minutely premeditated that no leniency by grant of bail could be extended to them. Respondent No,1 cannot deny his responsibility as an Accounts Officer from the whole affair. He is individually and vicariously liable for the alleged offence.
6. For what has been discussed above, the post-arrest to respondent No,1 by the learned Special B Judge, Central, Rawalpindi, vide order dated 12-3-2010 is cancelled. ,This application is accepted.
7. The observations made in this order are tentative, the same shall not prejudice the trial Court.