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Tag: President Arif Alvi

  • President Alvi retains major penalty on NAB official

    President Alvi retains major penalty on NAB official

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, has rejected the appeal of a NAB official to set aside the major penalty awarded to him over unlawful communication of official information for benefits of corruption.

    He also directed NAB to proceed against other officers involved in such cases and if found guilty punish them for doing corruption within the very institution that was responsible for controlling corruption.

    READ MORE: President Alvi directs bank to refund unfair recovery

    Noman Iqbal, Assistant Private Secretary (BS-16) had been awarded the major penalty of “reduction to a lower post for a period of five years” after it was proven that he copied and shared official information with unauthorized individuals.

    National Accountability Bureau (NAB), Karachi had conducted a fact-finding inquiry, based on a source report, under which confidential record was found in the mobile phone of appellant, which he was otherwise not authorized to hold.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    NAB had recommended initiating disciplinary proceedings against Iqbal. Initially, the matter was probed by Chairman Inspection and Monitoring Team, NAB (HQ), which revealed that Iqbal was involved in unlawful communication of official information inside and outside NAB in connivance with two other officials of NAB, Karachi.

    An inquiry committee was also constituted to probe into the matter that found the appellant guilty on charges of “misconduct” and “disclosure of official secrets”.

    A forensic analysis of appellant’s phone also found chats and documents which proved that he had copied and shared information with unauthorized individuals. Afterwards, Iqbal was awarded the penalty of reduction to a lower post for five years and two other officers involved were also penalized.

    READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

    Iqbal then submitted an appeal to the President, being the Appellate Authority, under NAB Employees Services Rules (TCS-2002) to set aside the major penalty.

    Chairman NAB through a summary, circulated through the Ministry of Law and Justice and endorsed by the Prime Minister, requested that the appeal of Iqbal may be rejected. President Dr Arif Alvi upheld the original decision on the grounds that Iqbal had not provided any cogent reason or additional justification to recall the earlier decision of major penalty.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    He emphasized that for such individuals this penalty does not do justice and wished that the punishment should have been harsher. “I direct NAB to complete the investigation against other officers involved and if found guilty punish them for the wrong done to the country and tarnishing its image,” the President noted while rejecting the appeal.

  • State Life Insurance directed to pay claim to widow

    State Life Insurance directed to pay claim to widow

    ISLAMABAD: The President of Pakistan Dr. Arif Alvi has directed State Life Insurance Corporation of Pakistan (SLICP) to pay claim of Rs412,000 to a widow along with interest amount for unnecessary delay, statement said on Sunday.

    Expressing displeasure over an unnecessary delay of seven years in the payment of life insurance claim to a widow, President Dr Arif Alvi directed the SLICP to pay the sum assured of Rs 412,000 as well as add inflation cost/interest to the accrued amount.

    READ MORE: President Alvi orders State Life to pay death insurance

    He further directed SLICP to apologize to the widow and change its financial system attitude and report compliance to Wafaqi Mohtasib within 30 days.

    The President passed these orders while rejecting a representation of SLICP against a decision of the Wafaqi Mohtasib directing it to pay the claimants the assured amount without further delay.

    READ MORE: President Alvi directs bank to refund unfair recovery

    As per the details, the deceased Mr Zahid Altaf Bhatti had obtained two life insurance policies from SLICP (the Agency) on 06.07.2007 and 25.06.2010 for the sum assured of Rs 212,000 and Rs 200,000 respectively. He died on 20.03.2015 and his wife, Mst Fouzia Zahid Bhatti (the complainant), approached the Agency to pay the insurance claim but the latter refused to pay the sum on the ground that the deceased had pre-insurance ailments and was a patient of liver disease/hepatitis C.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    Feeling aggrieved, Mst Fouzia Zahid Bhatti filed a complaint with Wafaqi Mohtasib who directed SLICP to pay the amount and report compliance within 30 days.

    Instead of implementing the orders of the Wafaqi Mohtasib, SLCIP filed a representation with the President against the decision of the Mohtasib. Rejecting the representation, President Dr Arif Alvi referred to section 80 of the Insurance Ordinance, 2000, which provides that an insurance policy cannot be called in question on the grounds of misrepresentation, false statement or suppression of material facts after two years from the date when the policy was originally effected.

    READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

    In the present case, the policies were issued in 2007 and 2010, whereas the policyholder expired in 2015, thus, the policy could not be called into question. He further noted that the Agency had failed to substantiate its claim and no clinical investigation or diagnostic assessment had been produced to corroborate the existence of pre-insurance ailment.

    The President further observed that the Confidential Report of the Field Officer had also declared the insured as healthy and categorically stated that he knew the deceased for the last 12 years.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    The President underlined that ethical principles and compassion should not be ignored in the pursuit of making profits.

    He stated that SLICP came out with frivolous excuses and delayed the payment in an unethical manner. The President advised the Agency to change its financial-system attitude and add inflation cost/interest to the accrued amount so that the beneficiary is not slighted because of pathetic delays.

  • President Alvi directs bank to refund unfair recovery

    President Alvi directs bank to refund unfair recovery

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has directed the Bank of Punjab to refund money to a family of a deceased person, which was recovered unfairly.

    President Dr. Arif Alvi upheld a decision of the Banking Mohtasib of Pakistan (BMP) ordering the Bank of Punjab to refund an amount of Rs 423,556 to the family of a deceased borrower which the Bank had unilaterally and unfairly recovered from the family.

    READ MORE: President Alvi rejects FBR plea in maladministration cases

    The President observed that the bank unnecessarily complicated a routine matter as its own SOPs empowered it to give financial relief in such cases.

    Late Mian Allah Wasaya had availed a loan of Rs 3 million in 2015 from the Bank of Punjab and deposited Regular Income Certificates (RICs) issued by the Central Directorate of National Savings, valuing Rs 3.5 million, as Liquid Security with the Bank.

    On January 27, 2017, he passed away, and the Bank on its own encashed the RICs then worth Rs 4.155 million and charged a mark-up of Rs 480,489 till October 22, 2018, while the accumulated mark-up at the time of Wasaya’s death was only Rs 57,294.

    READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

    The widow of Allah Wasaya (the complainant) requested the bank to charge mark-up till the period her husband was alive and waive off the mark-up thereafter.

    The Bank, however, did not accede to her request after which she approached the Banking Mohtasib for redressal of her grievance.

    After hearing the case and perusing the available record, the Banking Mohtasib noted that at the time of death the principal outstanding amount was Rs 2.889 million and the accumulated mark-up was Rs 57,294 only.

    In the given circumstances, it was the fiduciary responsibility of the bank to guide the legal heirs for adjustment of outstanding liability at this level against encashment of RICs, the BMP observed.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    It further noted that instead of exercising its statutory obligation to set off the loan against liquid security, the bank continued to linger on recovery and unnecessarily piled-up mark-up on the principal outstanding amount which was unfair as per the State Bank’s guidelines.

    The Mohtasib termed the claim of the bank as absurd and unprofessional that the matter pertained to the year 2018 and its books have been closed, therefore, it was not in a position to provide financial relief.

    It added that no rule, regulations, law, or accountant standard was referred which barred the bank to revisit the old/closed cases as such types of transactions were a routine matter.

    The Ombudsman held that unilaterally charging and recovering mark-up without justification beyond Rs 57,294 was an injustice to the deceased borrower’s family.

    READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints

    It ordered that the Bank had committed maladministration and malpractice by not exercising its rights without any valid reason even though holding fully cashable liquid security under the loan agreement documents and piling up mark-up liability unnecessarily.

    The Bank, subsequently, filed a representation against this decision of the BMP with the President. The President upheld Mohtasib’s decision and held that Bank had not provided any justification to upset the original order of the BMP.

    The representation is rejected as it is devoid of any merit and the bank had failed to discharge the burden and statutory liability cast upon it under the law, the President noted in his decision.

  • President Alvi rejects FBR plea in maladministration cases

    President Alvi rejects FBR plea in maladministration cases

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has rejected the plea of the Federal Board of Revenue (FBR) in maladministration cases.

    President Arif Alvi while upholding the decisions of Federal Tax Ombudsman regarding maladministration of FBR officials in processing refund cases has directed the FBR to implement FTO ‘s recommendations.

    READ MORE: Dr. Alvi orders action over misconduct with 82-year taxpayer

    The departmental plea regarding bar on jurisdiction of FTO in such cases has also been set aside by the president .He has directed The commissioner –IR , Commission West ZONE Islamabad and commissioner I-R Enforcement 11- CTO Karachi their orders by exercising powers conferred U/S 122 A ,as per law and report compliance within 30 days.

    In all three cases the background of the case was similar as under: In the first case pertaining to Sahiwal against order framed under section 170(4) of the income Tax Ordinance, 2001 (the ordinance) for tax year 2018 by commissioner I.R Sahiwal Nazir Ahmad Proprietor of M/s Bilal Commission Shop.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    He filed a complaint before the Federal Tax Ombudsman against failure to dispose of refund application for tax year 2018 which was disposed of vide findings with the recommendations that FBR may direct the commissioner –IR, Sahiwal Zone to complete the verification and settle complainants refunds for tax years 2018,after providing him opportunity of hearing as per law.

    In the second Case an individual filed return of income for tax year 2020 under section 114(1) of the ordinance claiming refund amounting to Rs 0.188 million and e-filed refund application for tax year 2020. He contended that the department issued notice under section 170(4) of the ordinance for functioning supporting evidence. Although short time was allowed but he made compliance whereas the unit officer without considering reply of the complainant passed the impugned order, in terms of section 170(4) of the ordinance whereby by the refund application was rejected. He therefore took up the matter with the Federal Tax Ombudsman by filing complaint under section.

    READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints

    Federal Tax Ombudsman thrashed the matter, directed FBR: It is an admitted position that the complaint e-filed refund application for tax year 2020. Evidently, the unit officer issued notice, under section 170(4) of the ordinance requiring the complainant to submit supporting evidence. Although the notice issued was in contravention of the FBR’S circular ,observed from perusal of the impugned order reflects that what to talk of providing statutory opportunity of impugned order passed under section 170 (4) of the ordinance.

    In case No 3, Yousuf Irshad Hussain, (the complainant) a proprietor concern, filed returns of income for tax years 2016 to 2019 under section 114 (1) of the income tax ordinance ,2001 the ordinance claiming refund amounting to Rs 0.051 million, Rs 0.048 million, Rs 0.063 million and Rs 0.063 million and Rs 0.072 million.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    He e-filed refund applications for tax years 2016 and 2019 along with evidence of tax deduction .however, despite his persistent efforts the zonal CIR failed to serve on the complainant orders in writing of the decisions in terms of section 170(4) of the ordinance within the stipulated time .he therefore took up the matter with FTO by filing complaint under section 10(1) of the FTO ordinance.

  • Dr. Alvi orders action over misconduct with 82-year taxpayer

    Dr. Alvi orders action over misconduct with 82-year taxpayer

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, expressed dismay over misconduct of tax authorities with an 82 year old taxpayers in a refund case.

    Dr. Alvi directed the chairman of the Federal Board of Revenue (FBR) to look into the entire system of irresponsibility and corruption and take punitive action against the entire chain of decision makers involved in the case, a statement said on Sunday.

    He took exception to the decision of FBR against a senior citizen that refused him to refund a paltry sum of Rs 2,333 on frivolous grounds and dragged him into unnecessary litigation spanning over a year.

    READ MORE: Dr. Alvi rejects banker’s plea in woman harassment case

    Apologizing to the senior citizen Abdul Hamid Khan, the President said that our heads should hang in shame for the inconvenience caused by FBR to the senior citizen.

    Abdul Hamid Khan (the complainant), a senior citizen of 82 years of age, had claimed a refund of Rs 2,333 on his income tax return for the year 2020 and submitted requisite documents of advance tax deduction of the PTCL and cell phone company bills on October 19, 2020.

    The complainant e-filed refund application on October 19, 2020 followed by representation to FBR Chairman on December 24,2020.

    The Unit officer of FBR rejected his refund claim, on January 29, 2021, on the grounds that the applicant had failed to furnish the original certificates required for authentication.

    READ MORE: Alvi praises FTO role in resolving taxpayers’ complaints

    The complainant then took up the matter with the Federal Tax Ombudsman (FTO) to seek redressal of his complaint. The FTO investigated the matter and ordered FBR on June 02, 2021 to revisit the impugned order ,dated January 19, 2021, and pass a fresh order, under section 170(4) of the ordinance, after providing the complainant the opportunity for hearing as per law.

    It further ordered to identify and initiate disciplinary proceedings against the official who passed the impugned order in derogation of the law and procedures and dragged the ageing taxpayer into unnecessary litigation as well as report compliance within 45 days.

    Consequently, FBR filed a representation with the President against the original order of FTO on 24.06.2021. President Dr Arif Alvi rejected the representation of FBR.

    The President said that the complainant had admittedly furnished copies of advance tax as per certificates collected by telephone authorities. In case the Unit Officer was not satisfied with the copies of certificates, he could have not only got the same verified from the PTCL and Cell Phone Company but verification was also possible through online system.

    He observed that it was the responsibility of the duty officer to get the deduction of tax verified from the deducting authorities irrespective of certificates being original or copies/system generated, if the same were not reflecting in the system for one or the other reason.

    READ MORE: PTCL registers 7.3% revenue growth for nine months

    The President termed the failure of the officer to verify the bills from PTCL and the cell phone company through the online system as shirking from responsibility and an act of maladministration.

    He upheld that the act of the officer was a mockery and travesty of law, procedure and instructions of FBR.

    It appeared that unlawful treatment was meted out in the instant case with a view to irritate and humiliate the ageing pensioner.

    While rejecting the representation of FBR, the President said that this must be the most pitiful and shameful use of bureaucratic authority and regretted that the FBR official had wasted the time of his department, the Tax Ombudsman and the President of Pakistan over a paltry sum of Rs 2,333 and the matter had lingered for over a year.

    READ MORE: FBR announces winners of first POS prize draw

    He also deplored that no one in the long chain of bureaucrats in FBR deliberated over the issue to take note of the unfairness, pettiness and superfluousness of the matter.

    “Punitive action must be taken along the entire line of decision-makers in this case and Chairman FBR should ensure that those responsible, in particular, and others, in general, go through courses to teach them priorities and courtesies,” he directed.

  • Finance (Supplementary) Bill gets presidential approval

    Finance (Supplementary) Bill gets presidential approval

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, on Saturday granted approval to the Finance (Supplementary) Bill. The National Assembly on January 13, 2022 adopted the finance supplementary bill tabled by the government.

    With the ascent of the President, the financial proposals of the government are not implemented.

    READ MORE: Supplementary bill aimed at documenting economy: Tarin

    The government on the demand of International Monetary Fund (IMF) withdrew tax exemptions to the tune of Rs343 billion.

    The bill was tabled on December 30, 2021 in the lower house in order to get approval before the schedule meeting of the IMF board on January 12, 2022.

    READ MORE: Retail sector’s sales worth Rs16 trillion not in tax net: Tarin

    The IMF Executive Board was to meet on January 12, 2022 for approval of above $1 billion tranche under $6 billion Extended Fund Facility (EFF).

    The government had realized it would not able to get approval by IMF board meeting. Therefore, the finance ministry requested the IMF to defer the meeting date by month-end. The lending agency approved the request and now this meeting likely to be held by January 28, 2022.

    READ MORE: Tarin warns tax evaders of strict actions

  • NBP directed to pay Rs0.5 million to fraud victim

    NBP directed to pay Rs0.5 million to fraud victim

    ISLAMABAD: The President of Pakistan, Dr Arif Alvi, has directed National Bank of Pakistan (NBP) pay Rs0.5 million to a victim of bank fraud.

    The president upheld the decision of the Banking Ombudsman and directed the NBP to pay Rs500,000 to the citizen who had been the victim of bank fraud at the hands of a former branch manager.

    READ MORE: SBP takes measures for prevention of digital bank fraud

    The president ordered that the bank must return the lost money to the victim and expressed dismay that the bank refused to own up to its responsibilities when a fraud had been committed by the employees of the bank against its customers.

    Muhammad Abdul Rasheed (the complainant), a resident of Faisalabad, had opened a bank account with the Hassan Road Branch, Jaranwala, and had handed over cash of Rs500,000 to the then manager, Akhtar Hussain, who gave the complainant a duly signed and stamped deposit slip.

    Later, upon visiting the branch to get his cheque book, the complainant came to know that an internal fraud had been committed by the then branch manager and he was one of the many victims of bank fraud and his money had not been deposited in his account by the manager.

    READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case

    A total of 56 affected accountholders submitted their claims to the bank amounting to Rs98.018 million for refunding of their defrauded amounts.

    Abdul Rasheed also approached the bank to receive his claim but was not provided any relief.

    Subsequently, he sought the assistance of the Banking Ombudsman to retrieve his lost amount who ordered that the bank pay the complainant his lost money. The NBP then filed representation with the President against the decision of the Ombudsman.

    President Dr Arif Alvi rejected the representation of the bank on the grounds that the deposit slip carrying the manager’s signature and stamp constituted a valid receipt and bound the bank to honour it.

    He upheld Ombudsman’s observation that although the bank manager had been dismissed by the bank and FIA was investigating the matter, the proceedings of the Ombudsman were of civil nature and were independent of any criminal prosecution by the FIA.

    READ MORE: Habib Bank, Meezan Bank directed to pay fraud victims

    He further noted that the complainant was dealing with the authorized agent of the bank who was not only in active service of the bank as the branch manager but had received the cash during banking hours within the premises of the bank against a valid deposit slip.

    While terming the act of the ex-manager an act of maladministration and malpractice, the president further observed that the perusal of the relevant sections of the Federal Ombudsmen Institutional Reforms Act, 2013 showed that in matters falling within the jurisdiction of the banking ombudsman, the jurisdiction of other courts or authorities was excluded.

    READ MORE: Bank branch manager defrauds 29 customers

    He wrote that the bank was given ample opportunity to refute the claim of the complainant and it failed to discharge the burden and statutory liability cast upon it under the law.

    Since no justification has been made to upset the original order of the Ombudsman, therefore, the representation of the bank was devoid of any merit and deserved to be rejected, he ordered.

  • Dr. Alvi rejects banker’s plea in woman harassment case

    Dr. Alvi rejects banker’s plea in woman harassment case

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi, has rejected a petition filed by a banker for reinstatement into service, who was sacked for harassing a woman.

    The petitioner filed the appeal before the president against the decision of the Federal Ombudsman for Protection against Harassment of Women at Workplace which had modified the punishment of “dismissal from service” into “removal from service”.

    READ MORE: President Alvi rejects MCB Bank’s appeal in fraud case

    The President upheld the orders of the ombudsman noting that the petitioner was awarded the penalty of dismissal from service after inquiry wherein allegations of harassment stood established against him and the petitioner had failed to point out any illegality with the order of the learned ombudsman.

    According to the background of the case, Naeem Iqbal was appointed as Bank Cashier Grade-1 at Bank Alfalah Ltd, on February 01, 2006, and he was later promoted to Operation Officer, Counter Services Manager and Branch Operation Manager in 2010, 2014 and 2016 respectively.

    READ MORE: President Alvi orders two banks to pay victims of fraud

    Ms Habiba Rauf had filed a complaint before the management of the bank alleging acts of harassment against the accused.

    After inquiry, Iqbal was found guilty and, consequently, dismissed from the service by Bank Alfalah Ltd.

    After making a representation before the competent authority, he filed an appeal before the Woman Ombudsman who ordered that the appeal of the accused deserves outright dismissal, yet, on considering his long service and the fact that he has a large family, consisting of small kids and aged parents, leniency in punishment looks more appropriate and nearer to justice and fair play.

    READ MORE: President Alvi orders State Life to pay death insurance

    The ombudsman, therefore, modified the punishment of “dismissal from service” into “removal from service” and disposed of his appeal.

    Subsequently, Naeem Iqbal filed a representation with the President for reinstatement into service. While disposing of his appeal, the President noted that the petitioner was seeking setting aside of the order of the bank, dated March 18, 2019, and reinstatement into service purely on humanitarian grounds.

    The learned Ombudsman had already converted the penalty of dismissal to removal from service on such grounds.

    The President observed that since the petitioner had failed to point out any illegality with the order and no justification existed to interfere with the order of the Ombudsman, therefore, the instant representation is dismissed.

    READ MORE: Dr. Alvi opens property exhibition for UAE based NRPs

  • President gives assent to bills passed by Parliament

    President gives assent to bills passed by Parliament

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has accorded assent to the bills that were passed by the National Assembly – Parliament on November 17, 2021, a statement said on Wednesday.

    On the summaries initiated by National Assembly Secretariat and on the advice of the Prime Minister, the President of Pakistan has accorded his assent to the following Bills, in terms of Article 75 of the Constitution of the Islamic Republic of Pakistan, 1973:-

    (i) The Privatization Commission (Amendment) Bill, 2021

    (ii) The Port Qasim Authority (Amendment) Bill, 2021

    (iii) The Islamabad Capital Territory Prohibition of Corporal Punishment Bill, 2021

    (iv) The International Court of Justice (Review and Re-Consideration) Bill, 2021

    (v) The SBP Banking Services Corporation (Amendment) Bill, 2021

    (vi) The Corporate Restructuring Companies (Amendment) Bill, 2021

    (vii) COVID-19 (Prevention of Hoarding) Bill, 2021

    (viii) The Anti-Rape (Investigation and Trial) Bill, 2021

    (ix) The Islamabad Capital Territory Charities Registration, Regulation and Facilitation Bill, 2021

    (x) The Islamabad Rent Restriction (Amendment) Bill, 2021

    (xi) The Prevention of Corruption (Amendment) Bill, 2021

    (xii) The Federal Public Service Commission (Validation of Rules), Bill, 2021

    (xiii) The Loans for Agricultural, Commercial and Industrial Purposes Amendment) Bill, 2021

    (xiv) The National Vocational and Technical Training Commission (Amendment) Bill, 2021

    (xv) The Islamabad Capital Territory Food Safety Bill, 2021

    (xvi) The Emigration (Amendment) Bill, 2021

    (xvii) The Pakistan Academy of Letters (Amendment) Bill, 2021

    (xviii) The Gwadar Port Authority (Amendment) Bill, 2021

    (xix) The Companies (Amendment) Bill, 2021

    (xx) The Maritime Security Agency (Amendment) Bill, 2021

    (xxi) The Pakistan National Shipping Corporation (Amendment) Bill, 2021

    (xxii) The Financial Institutions (Secured Transactions) (Amendment) Bill, 2021

    (xxiii) The University of Islamabad Bill, 2021

    (xxiv) The Al-Karam International Institute Bill, 2021

    (xxv) The National College of Arts Institute Bill, 2021

    (xxvi) The Hyderabad Institute for Technology and Management Sciences Bill, 2021

    (xxvii) Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill, 2021

    (xxviii) The Provincial Motor Vehicles (Amendment) Bill, 2021

    (xxix) The Unani, Ayurvedic and Homeopathic Practitioners (Amendment) Bill, 2021

    (xxx) The Muslim Family Laws (Amendment) Bill, 2021

    (xxxi) The Muslim Family Laws (Second Amendment) Bill, 2021

    The above Bills have been passed by the Majlis-e-Shoora (Parliament) under clause (3) of Article 70 of the Constitution in joint sitting held on November 17, 2021.

    President Alvi orders State Life to pay death insurance
  • Habib Bank, Meezan Bank directed to pay fraud victims

    Habib Bank, Meezan Bank directed to pay fraud victims

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has directed Habib Bank Limited and Meezan Bank to pay victims of bank fraud. The President rejected the representation of the banks and upheld the decision of Banking Mohtasib (Ombudsman).

    President Dr Arif Alvi has provided relief to 6 different victims of bank fraud by upholding the decisions of the Banking Mohtasib ordering private banks to refund a collective sum of over Rs 827,000 to the accountholders.

    The President rejected 05 different representations of Habib Bank Limited (HBL) and 01 representation of Meezan Bank Limited against the decisions of Banking Mohtasib directing them to make good the loss of the victims of bank fraud by crediting the lost money to their individual bank accounts.

    As per the details of the cases, Muhammad Pervaiz Khan, Kashif Latif, Naimat Ali, Intezar Ahmed, Ms Asia Manzoor, and Mohsin Shabbir (the complainants) had been maintaining their individual bank accounts with HBL.

    They received calls from unknown numbers and the callers posed as bank officials and asked them to share their personal credentials which they did. The callers managed to defraud Pervaiz Khan of Rs 333,300, Latif of Rs 140,000, Naimat of Rs 137,489, Intezar of Rs 119,848, Ms Asia of Rs 78,780 and Shabbir of Rs 20,108 by fraudulently transferring funds from their bank accounts.

    Afterward, they received alerts about hefty amounts being withdrawn from their bank accounts. The complainants approached the bank to get their defrauded amounts refunded, however, they were not given any relief.

    Later, the complainants approached the Banking Mohtasib individually to seek redressal of their complaints. The Banking Mohtasib in its decision wrote that the bank had activated fund transfer service i.e., IB/EFT channel by default without informing the complainants and had not divulged the pros and cons of the “fund transfer” facility in terms of Section 30 of Payment System and Electronic Fund Transfer Act-2007.

    It noted that since the facility was unsolicited, therefore, any financial loss in this regard cannot be categorized as “customer liability”.

    It further observed that had IB/EFT channel not been made operational by the bank, the complainants could have avoided the financial loss.

    The Banking Mohtasib held that the bank could not produce any evidence to the effect that it had complied with the provisions of law, rules and regulations and ordered the bank to refund the defrauded money to the complainants.

    Subsequently, the banks filed representations with the Honorable President against the decisions of the Mohtasib.

    The President in his decision observed that the banks were given ample opportunity to defend and controvert the claims of the complainants, however, they failed to provide any justification to upset the orders of the Mohtasib.

    “The Banks failed to discharge their duty and the legal responsibility cast upon them under the law”, the President noted while rejecting the appeals as being devoid of any merit.

    President Alvi rejects MCB Bank’s appeal in fraud case