FIA withdraws corruption charges: Tax expert gets a clean chit from court

ISLAMABAD: Special Court Karachi has outrightly dismissed a case against Shabbar Zaidi, a renowned tax expert and former Chairman of the Federal Board of Revenue (FBR) and cancelled the FIR registered against him by the Federal Investigation Agency (FIA).

The court has given a clean chit to Zaidi, one of the top chartered accountants, from all charges leveled against him.

The court categorically declared that the refunds were rightly paid under the laid-down law and procedures. “The disbursement of refunds was found to have been carried out under lawful authority and in accordance with prescribed procedures,” the court added.

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According to the order issued by the Special Court (Central-I) Karachi in favour of Zaidi, the cancellation report No. 57/2025 has been submitted by the Assistant Director/IO, FIA ACC, Karachi duly forwarded by Ms Motia Sikandar, learned AD (Legal)/Prosecutor FIA, in respect of FIR No. 32/2025 registered under Section 5(2) of the Prevention of Corruption Act, 1947 read with Section 109 PPC, recommending the case as “C-Class under Rule 24 7 of the Police Rules, 1934.”

The court has heard the Investigating Officer and the learned Prosecutor of the FIA, who perused the contents of the report and examined the record carefully.

The investigations indicate that no evidence of mens rea, personal gain, or criminal collusion has been found against the accused individuals, including Syed Muhammad Shabbar Zaidi, FBR officials and the bank management. The disbursement of refunds was found to have been carried out under lawful authority and in accordance with prescribed procedures. No incriminating material has surfaced to connect the accused with any corrupt practice or misuse of authority, the court maintained.

The Investigating Officer has, therefore, recommended cancellation of the case under “C-Class,” being a false or mistaken case without criminal intent, and placed the names of the accused individuals as not sent up for the trial. The cancellation report is accepted. The FIR No 32/2025 dated 29.10.2025 of FIA Anti-Corruption Circle, Karachi, is hereby cancelled under Rule 24.7 of the Police Rules, 1934, and the case is classified as “C-Class. The accused persons are accordingly discharged from the case.

Meanwhile, the report of the Director FIA Karachi stated that the Director, FIA Karachi Zone has been pleased to accord permission for cancellation of case FIR No. 32/2025 dated 29.10.2025 under Rule 24.7 of the Police Rule 1934, as well as classification of case as “C-Class- and submission of discharge report before the Judge of the Special Court (Central. I) Karachi U/s 173 Cr P.0 against the former chairman of the FBR, FBR Officials and the management of bank.

Copyright Business Recorder, 2025