Indus Motors Company Loses Embezzlement Appeal, Executive Acquitted
In a significant blow to M/s Indus Motors Company Limited, the High Court of Sindh at Karachi today dismissed its appeal to overturn the acquittal of former senior executive Tariq Mehboob Cheema. Mr. Cheema, accused of criminal breach of trust and fraud causing losses of over Rs. 8.5 million, has been fully acquitted, with the court citing “significant and incurable defects” in the prosecution’s case.
The prolonged legal battle stemmed from an FIR lodged in 2012 by Indus Motors Company, alleging that Mr. Cheema engaged in illegal activities, including unauthorized discounts and adjustments in invoices, during his tenure as Senior Manager Parts. However, Justice Khalid Hussain Shahani upheld the earlier acquittal order, finding the charges against Mr. Cheema “groundless” and concluding there was “no probability of conviction”, which makes Indus Motors Company the loser.
The judgment meticulously detailed numerous evidentiary weaknesses.
The court noted that a crucial internal audit, which formed the basis of the accusation, lacked key substantiation: the Indus Motors Company CEO, who allegedly directed the audit, was never cited as a witness nor was his statement recorded. Furthermore, significant documents presented by the prosecution, including one central to the embezzlement charge, lacked essential signatures, names, dates, or approval from the Indus Motors Company CEO, and many were merely unverified photocopies.
Investigation Officer (PW-2 Jaffar Khan Baloch) admitted during cross-examination to not recording statements of key company personnel, failing to verify claims in the market, and not seizing critical forensic evidence like the computer system that generated invoices. The court also pointed to an unexplained one-year delay in lodging the FIR, which cast “serious doubts about the veracity of the prosecution story”.
Ultimately, the High Court found that the Indus Motors Company prosecution failed to establish the “mens rea,” or guilty mind, on the part of Mr. Cheema. The court concluded that the lower court’s decision to acquit Mr. Cheema under Section 249-A Cr.P.C. was “well-reasoned, comprehensive, and based on a thorough and judicious analysis” of the evidence.
