Money laundering case : SHC grants bail to Axact CEO

KARACHI: The Sindh High Court on Saturday granted bail to Axact’s chief executive officer Shoaib Ahmed Sheikh in the Rs170.17 million money laundering case.

The bail application was filed by the Axact CEO after its rejection by the additional district and sessions court on March 1, 2018. He was earlier arrested by the FIA after the Sindh High Court set aside his acquittal and that of two directors of a money exchange company by the trial court.

According to the FIA, accused Shoaib Sheikh had opened account in Habib Bank DHS branch in the name of his mother, while having a mandate in his own name and on the very next date showed his malafide and issued over 116 cheques in favour of the vendors of the company owned by accused. The cheques were delivered by the Axact employees to co-accused directors and branch manager of M/s Chanda Exchange as well as encashment of all cheques through M/s Chanda exchange, though there was no business deal between M/s Axact and M/s Chanda exchange. The FIA alleged that Shoaib Sheikh along with directors of the money exchange company illegally sent Rs.117.17 million remittance through Hawala to Dubai in violation of foreign exchange laws. A case was registered against Shoaib Sheikh and two others under section 5,8,22,23 of Foreign Exchange Regulation Act and section 109/34 of Pakistan Penal Code.

The defendent's counsel submitted that the prosecution had failed to provide sufficient and concrete evidence to establish the guilt of the accused who had obtained money through legitimate businesses. He submitted that neither the State Bank of Pakistan nor the federal government had complained to the Federal Investigation Agency. The SHC’s single bench headed by Justice Faheem Ahmed Siddiqui, after hearing the arguments of the counsels, granted bail to the Axact CEO on surety of Rs.10 million.