In a surprising and unexpected turn of events, the Islamabad High Court has granted bail to Shahid Hussain Khawaja, a branch manager at a private Karachi bank, in the highly publicized 3.2 billions rupee sales tax fraud case.
Justice Babar Sattar’s ruling, which came with a mere Rs.100 surety bond, has sent shockwaves through the tax department and raised eyebrows across legal circles.
The court sharply criticized the actions of the tax authorities, declaring that their criminal proceedings against Khawaja exceeded their powers. The court ordered that a copy of the case and its details be sent to the Chairman of the Federal Board of Revenue (FBR) for further review.
In its judgment, the court also slammed both the magistrate and subordinate courts for their failure to follow proper legal procedures, implying potential consequences for the officials involved.
The Islamabad High Court found no substantial evidence linking Khawaja to the alleged fraud, describing his arrest as based on incorrect grounds.
The court further emphasized that the tax department’s actions were unlawful, violating Khawaja’s constitutional rights. This ruling reinforces the message that even powerful state institutions must adhere to the law and respect individual rights.
Khawaja, who was accused of assisting in a massive tax fraud scheme, was granted bail on the incredibly low surety bond of just Rs.100, a decision that has raised serious questions regarding the strength of the case against him.
As the case progresses, tax authorities will now face intense scrutiny to justify their actions, with the ruling serving as a stark reminder of the limitations of their powers.
This decision marks a significant legal victory for Khawaja, and could have far-reaching implications for the credibility of the tax authorities involved.