A criminal case has been registered against four partners of M/s Southland Flour Mill after JS Bank Limited accused them of defaulting on banking facilities exceeding Rs. 100 million and allegedly disposing of wheat stock pledged as collateral for the loan.
The First Information Report (FIR) was lodged by police in Kotri under Section 406 of the Pakistan Penal Code, which pertains to criminal breach of trust. The complaint was submitted by the bank’s Mukaddam, and authorities initiated legal proceedings after completing the required inquiry and obtaining the necessary approvals.
According to the complaint, the bank discovered shortages in the wheat stock that had been pledged as collateral against the financing facility. During routine inspections, officials allegedly found that a significant portion of the grain secured under the bank’s charge was missing.
The bank maintains that it repeatedly attempted to resolve the matter through formal notices, site inspections, meetings with the firm’s partners, and written undertakings. However, despite these efforts, the alleged missing collateral was not restored, and the outstanding financial obligations remained unsettled.
Following the registration of the FIR, police launched an operation to locate the individuals named in the case. An Out-District Permission issued by the Senior Superintendent of Police (SSP), Jamshoro, authorized law enforcement teams to conduct raids beyond the district’s jurisdiction.
Police teams are now working alongside authorities in Hyderabad and Dadu to trace the accused. According to investigators, searches have already been carried out at residences, business locations, and commercial properties associated with the suspects, while coordination with local police continues as the operation expands.
The four partners named in the FIR are:
- Daya Ram
- Bhojo Mal
- Shafi Muhammad
- Shah Jehan
According to partnership records referenced in the investigation, each individual holds a 25 percent ownership stake in M/s Southland Flour Mill.
Investigators are currently reviewing financial records, warehouse documentation, inspection reports, and banking transactions to determine the full extent of the alleged irregularities. Officials indicated that additional legal provisions could be invoked if further evidence emerges during the course of the investigation.
The case highlights the legal consequences businesses may face when disputes arise over collateral-backed financing. Banks typically require pledged assets to remain intact throughout the duration of a financing agreement, and any unauthorized disposal of collateral can result in both civil recovery proceedings and criminal investigations where applicable.
Authorities have not announced any arrests at the time of reporting, and the investigation remains ongoing. The allegations contained in the FIR have yet to be tested before a court, and all individuals named in the case are presumed innocent unless proven guilty through the legal process.
