Financial crimes

The Pakistan Penal Code 1860 addresses the issue of dishonoured cheques, a crime that has become rampant these days. Consequently, the payee often files an FIR against the issuer. Section 489-F PPC stipulates that issuing a cheque knowing that it will bounce, either for loan repayment or obligation fulfilment, constitutes an offence punishable by up to three years imprisonment and a discretionary fine. Notably, the maximum conviction remains three years, regardless of the cheque's value, raising questions about the proportionality of punishment for substantial amounts. Habitual offenders also exploit the system by issuing cheques to delay payment.

This tactic, known as ‘cheque kiting’, allows wrongdoers to buy time. When payments are not made on time, complainants file FIRs but the accused individuals often secure bail, delaying proceedings. This prolongs the agony for the complainant, who face financial losses from legal fees and trial-related distress. To prevent such abuse, Section 489-F PPC needs to be amended. The punishment should reflect the severity of the offence and cases should be disposed of within a period of one month. This would ensure swift justice for victims of financial fraud, sparing them unnecessary hardship.

Advocate Riaz Ali Panhwar

Hyderabad