Bail application of Axact CEO: Another judge recuses himself from hearing

KARACHI: Another judge of the Sindh High Court on Friday recused himself from hearing the bail application filed by Axact’s chief executive officer Shoaib Ahmed Sheikh in Rs170.17 million money laundering case.

The bail application of Axact CEO was fixed before Justice Mohammad Saleem Jessar for hearing. However, the court referred the bail application to Chief Justice of SHC for fixing it before the same bench that heard the bail application of other co-accused in the instant matter. The case was earlier fixed before Justice Salahuddin Panhwar for hearing and the court directed the counsel to place judgment of the Supreme Court in the Axact case.

The bail application was filed by the Axact CEO after rejection by the additional district and sessions court on March 1, 2018. The Axact CEO has been arrested by the FederalInvestigation Agency as the Sindh High Court had earlier set aside the acquittal of Shoaib Sheikh and two directors of a money exchange company by the trial court in a money laundering case.

The SHC’s division bench, headed by Justice Naimatullah Phulpoto, setting aside the acquittal order of additional district and sessions judge, observed that the acquittal of the accused under Section 249-A CrPc would not have the same sanctity as orders of acquittal on merits. The court had observed that special or peculiar facts and circumstances of a prosecution case may not warrant filing of an application at a stage before framing of charge.

The court also ordered that the copy of the judgment be sent to additional district and sessions judge, who passed the acquittal order, wherever he is posted for future guidance with advice to be careful in future.

According to the FIA, accused Shoaib Sheikh opened an account in the Habib Bank, DHA branch, in the name of his mother having mandate in his own name. On the very next date, he issued as many as 116 cheques from his Axact office through his own signatures and finally in favour of vendors of the company owned by accused. It were delivered by the employees of the company to co-accused persons who were director and branch manager of M/s Chanda Exchange and encashment of all cheques through M/s Chanda Exchange though there were 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 the foreign exchange laws. A case has been registered against Shoaib Sheikh and two others under sections 5,8,22,23 of the Foreign Exchange Regulation Act and Section 109/34 of Pakistan Penal Code.

The applicant's counsel submitted that the prosecution failed to provide sufficient and concrete evidence to prove the guilt of the accused who had obtained money through his legitimate businesses. He submitted that neither the State Bank nor the federal government sent a complaint to FIA to probe the case as all the money was received by the applicant through proper channel.