EDITORIAL: The Lahore police’s proposal to amend Section 420 of the Pakistan Penal Code (PPC) to make cheating and fraud a non-bailable offence is a commendable initiative. As property transactions, commercial investments and online businesses expand rapidly, the law must evolve to protect citizens against the growing threat of financial fraud. The proposed reform offers an opportunity to strengthen accountability, restore public confidence in the justice system and ensure that victims are not left without effective legal recourse.
Inherited from the colonial-era Indian Penal Code, Section 420 has remained largely unchanged despite dramatic shifts in the nature and scale of financial crime. Today, people lose their life savings to fraudulent property dealers, fake investment schemes, dishonest business partners and online scammers. The financial and emotional consequences can be devastating, particularly for middle and lower-income families. Making the offence non-bailable could strengthen the deterrent against deliberate and organised fraud. However, the reform must incorporate adequate safeguards against the misuse of criminal proceedings in genuine business disputes. Non-bailable status should neither imply automatic detention nor undermine the presumption of innocence. Bail decisions must remain subject to judicial scrutiny, and allegations must be investigated impartially on the basis of credible evidence. The objective should be to secure justice, not merely to make arrest and detention easier.
Equally important is the Lahore police’s initiative to introduce standard operating procedures (SOPs) for cases registered under Section 406, which deals with criminal breach of trust. The Supreme Court’s rulings rightly emphasise that a contractual disagreement or failure to repay money does not, by itself, constitute a criminal offence. The prosecution must establish that property was entrusted to the accused and was dishonestly misappropriated or converted in breach of that trust. Failure to distinguish civil disputes from criminal offences can result in serious miscarriages of justice, including wrongful arrest and detention.
The reported cancellation of more than 200 cases registered under Section 406 highlights the need for greater scrutiny at the investigation stage. Police officers must carefully differentiate between cheating, criminal breach of trust and ordinary contractual disputes before registering a first information report (FIR). Clear guidelines, proper documentation and effective supervisory oversight can help prevent arbitrary arrests, unnecessary litigation, and the misuse of criminal law.
The Punjab government should now examine the proposed amendments through a transparent legislative process, consulting legal experts, judicial representatives, law-enforcement officials, businesses and civil society. An effective legal framework must protect fraud victims without compromising the rights of the accused. If implemented fairly and consistently, these reforms could help close existing legal gaps, and serve as a deterrent against financial wrongdoing. Deliberate deception must carry meaningful consequences, while the law must remain an instrument of justice rather than a tool for settling civil or commercial disputes.
Copyright Business Recorder, 2026
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