ORDER SHEET

IN THE HIGH COURT OF SINDH, KARACHI

Crl. Bail Application No.872 of 2010

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Order with signature of Judge

1.         For order on office objection

2.         For hearing

08.10.2010

Mr. Raza Hashmi, advocate alongwith applicant

Mr. Shahab Sarki, Standing Counsel alongwith Mansoor Ahmed I.O.

………

The applicant/accused has sought bail before arrest in Crime No.18/2010 registered on 16.07.2010 under Sections 406, 409, 420, 109/34 PPC read with Section 5(2) PCA, 1947 at P.S. FIA Crime Circle, Karachi. Briefly the case of the prosecution against the applicants/accused as stated in the FIR is as under:-

“During the course of investigation in respect of alleged corruption and corrupt practices in the Pakistan Steel Mills it transpired that consumer dealers in collusion with the top management of Pakistan Steel Mills namely Mueen Aftab Shaikh, the then Chairman, Sameen Asghar, the then Director Commercial and Rasool Bux  Phulpoto, the then Director Admn & Marketing/Managing Director fraudulently, dishonestly with ulterior motives caused wrongful loss to the government ex-chequer and  wrongful gain to the said companies  to the tune of millions of rupees regarding sale purchase of various finished products including long and flat products of Pakistan Steel Mills for the period 2008-2009. The details of beneficiaries of billet and HR are as follows:-

S#	Name of Consumer Dealers of Billet	S#	Name of Consumer Dealers of HR
1.	M/s Ahmreli Steel Pvt. Ltd. (421)	1.	M/s BBI Pipe Industries Pvt. Ltd. (1341)
2..	M/s Metropolitan Steel Corporation Ltd. (143)	2.	M/s Win Pipe Industries (5015)
3.	M/s Hattar Solid Steel Corporation Ltd. (4099)	3.	M/s Bashir Pipe Industries Pvt. Ltd. (1634)
4.	M/s Nawab Brothers Steel Mills Pvt. Ltd. (196)	4.	M/s Jamal Pipe Industries Pvt. Ltd. (1106)
5.	M/s Madian Steel Lahore (1878)	5.	M/s Ramzan Tube Mills (1850)
6.	M/s AS Steel (4079)	6.	M/s AN Industries Pvt. Ltd. (1596)
7.	M/s Faizan Steel, Karachi (4071)	7.	M/s Hajveri Steel Traders (1715)
8.	M/s Sarhad Re-Rolling Mills (600)	8.	M/s Victory Pipe Industries (5006)
9.	M/s Deewan Steel Mills (306)	9.	M/s Indus Steel Pipe Ltd (226)
10.	M/s AF Steel Re-Rolling Mill (1872)	10	M/s Millat Pipe Industries (1899)

In November 2008, the prices of Pak Steel Product were reduced upto 35% in comparison to local and International Market but when local & international market was at higher side the prices were not increased by Pakistan Steel Mills and in this way a financial loss amounting to billions of rupees was caused to Pakistan Steel.

The applicant/accused having serious apprehension of arrest at his arrival at Karachi Air Port sought pre-arrest bail from this Court on the ground that the applicant is neither nominated nor any role has been assigned to him in F.I.R No.18 of 2010, whereas the F.I.A has started to harass the applicant and his family. It was further argued that under the similar facts and circumstances in Cr. Bail Application No.795/2010 of 2010 arising out same F.I.R the applicant, who is also dealer of Pakistan Steel Mills was granted ad-interim pre-arrest bail. Accordingly, in view of rule of consistency and without touching the merits of the case the applicant/accused was admitted to ad-interim pre-arrest bail on 26.08.2010, subject to furnishing solvent surety in the sum of RS.2,00,000/-  with P.R. bond in the like amount to the satisfaction of Nazir of this Court after notice to learned D.A.G. Today, when the matter is taken-up for confirmation or otherwise of the ad-interim pre-arrest bail, the learned counsel for the applicant present along with applicant submitted that since no amount of alleged profits/gain during the subject period calculated on the basis of public audit conducted at the instance of Pakistan Steel Mills on the basis of local market rate price was earned by the present applicant, the bail of the applicant may be confirmed in the same terms of the pre-arrest bail granted on 26.08.2010. Per learned counsel, in similar circumstances in Crl. Bail Application No.779/2010, wherein M/s Deewan Abu Obaida Farooqui and Deewan Rehan Farooqui under similar facts and circumstances were granted bail by this Court. Whereas, in Crl. Bail Application No.923/2010 the pre-arrest bail was granted to Asif Bhagani was confirmed by this Court vide order dated 28.09.2010. Per learned counsel, in view of rule of consistency the ad-interim pre-arrest bail granted to the present applicant/accused on 26.08.2010 may be confirmed in the same terms as stated in the pre-arrest bail. In support of his contention he has placed reliance on the cases of Javaid Anwar v. The state (2001 P.Cr.L.J., Karachi 1125), Fida Hussain v. The State (PLD 2002 Supreme Court 46) and Ghulam Mustafa v. The State (2008 P.Cr.L.J., Karachi 1546).

            Learned Standing Counsel present alongwith the concerned I.O., to the above submissions of the learned counsel for the applicant/accused, has not opposed the grant of bail however, he has submitted that the amount of alleged profits/gain as stated by the applicant, has been calculated on the basis of local market whereas the same is required to be calculated on the basis of International Market, which per learned Standing Counsel works out to be Rs.43,975,821.490. To this submission, the learned counsel for the applicant/accused replied that the said calculation is based on hypothesis, whereas, it is yet to be determined and proved through evidence as to whether applicant/accused has earned any alleged illegal profits or gain out of alleged transaction, and if so, what is the quantum of such alleged profits/gains.

            I have heard the learned counsel for the applicant as well as learned Standing Counsel and perused the record. Since under similar circumstances, the bail has been granted to other registered dealer of Pakistan Steel Mills in Cr. Bail Application No.779/2010 and Crl. Bail No.923/2010, therefore, without commenting on the quantum of the alleged amount earned as profits/gain during the said period by applicant/accused the bail of present applicant/accused Shahnawaz Ishtiaq is hereby confirmed in the same terms as mentioned in the pre-arrest bail order dated 26.08.2010.

J U D G E