Business groups demand probe into cheque bounce fraud

KARACHI: Industrialists and business leaders from various trade organisations on Monday demanded a thorough investigation into the misuse of the cheque bounce law, which they said was being used to target and extort them.

The demand was made at a joint press conference, held on Monday, by representatives of the Korangi Association of Trade and Industry (KATI), the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), the Karachi Chamber of Commerce and Industry (KCCI), and other trade associations.

They expressed concern over a new method of fraud targeting industrialists and businessmen, leading to unwarranted arrests and extortion attempts.

They also expressed their support for Johar Qandhari, the president of KATI, who said he was falsely accused of issuing bounced cheques to a person he had no dealings with.

Qandhari said he had presented call data records as evidence and urged the authorities to investigate the bank staff who declared the cheque as bounced without verification.

The KATI chief said he was blackmailed by unknown people who demanded a large sum of money for his release, but he received cooperation from the police officials. "A forensic examination of the cheques showed that they were forged with fake signatures and seals."

He also said the plaintiffs did not appear in court and the case against him was upgraded to a C class FIR, which means it was false or malicious. He hoped for a fair and just decision based on merit.

Saqib Fayyaz Maggoo, the senior vice president of FPCCI, condemned the misuse of the cheque bounce law, which he said was meant to benefit the business community. He appealed to the higher authorities to provide protection to businessmen in the face of such incidents.

Asif Sum Sum, the chairman of the Association of Builders and Developers (ABAD), called for the implementation of proper procedures in handling cheque bounce cases, and urged the chief minister of Sindh, the inspector general of Sindh, and the police chief of Karachi to address the issue.

Javed Bilwani, the coordinator of the Textile Exporters Forum, commended Qandhari for exposing the fraudulent activities and called on all town associations to bring such matters to light.

He said the abuse of the cheque bounce law could undermine investor confidence and affect the overall capital of the country. Zubair Chhaya, the deputy patron-in-chief of KATI, echoed the sentiment, and said practical steps were needed to prevent such incidents in the future.

He warned of severe reactions if immediate actions were not taken and stressed that the cheque bounce law should serve the convenience, not the difficulty, of the business community. The united stance of all town associations was pledged in support of Qandhari and the fight against the misuse of the cheque bounce law.