ISLAMABAD – MCB consumers are still waiting for compensation in six bank fraud cases after its appeals against orders were rejected, leaving the bank liable to pay Rs21.7 million plus profit to affected customers. Despite the rulings, the complainants say they are still awaiting payment, adding fresh scrutiny to alleged fraud in Sialkot.
MCB six customers were collectively awarded Rs21.67 million plus profit by the Banking Mohtasib Pakistan. MCB challenged the decisions, but the bank lost all six appeals before the President’s Secretariat between July 30 and August 25, 2026. The customers now say that, despite the final orders and the expiry of the bank’s compliance deadlines, not a single rupee has reached them.
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According to presidential orders reviewed in the matter, MCB’s internal investigation attributed the alleged scheme to branch manager Saeed Arif. Investigators reportedly found that Arif had used his position to create fictitious Term Deposit arrangements. Customers’ cheques allegedly handed over for legitimate banking transactions were instead used to withdraw funds, while proceeds were allegedly diverted to an account linked to a relative.
The bank subsequently took action against other employees after its inquiry found their involvement in the transactions. The allegations paint a striking picture: customers believed they were dealing with their bank, while investigators say transactions were allegedly being conducted outside the bank’s legitimate procedures from within the branch itself.
One of the cases involved Mussarat, an illiterate customer who deposited Rs9 million after selling her house. She later discovered that approximately Rs9.5 million had been debited from her account through cheques she said she had never signed. Her cheque book was subsequently found in a bank official’s drawer, according to the case record.
Other customers reported losses ranging from Rs1.41 million to Rs3.6 million. Their complaints involved alleged fake Term Deposit certificates, stamped deposit slips that were not properly recorded and cash handed over to officials but allegedly never reflected in the bank’s records.
MCB argued in the cases that the customers had dealt with the branch manager “personally” and that the bank therefore should not be held responsible for the disputed transactions. Banking Mohtasib rejected that argument, applying established principles of vicarious liability.
MCB has previously attempted to rely on a similar defence. In 2019, Sindh High Court rejected MCB petitions relating to fraud cases at its Nawabshah and Hub Chowki branches. In 2023, the President ordered MCB to compensate a customer in a separate Jhang branch fraud case.
President’s Office had previously emphasized that bank employees’ involvement in fraudulent transactions cannot simply be separated from the bank where the misconduct occurs within the banking operation.
The six successful complaints may be only the visible portion of a much larger problem. According to figures attributed to MCB, 44 customers complained about 54 transactions at the same branch, with the disputed amount reaching approximately Rs76.29 million.
Federal Investigation Agency also entered the case. FIA Gujranwala registered FIR No. C-207/2025 in March 2025 and subsequently arrested Arif. He has not been convicted, and the allegations against him remain subject to the criminal justice process.
The dispute has now entered another phase: enforcement. Under Section 82E of the Banking Companies Ordinance, the compliance periods attached to the six orders fell between September 8 and October 4, 2026. Those deadlines have passed.
The complainants have since filed execution applications seeking enforcement of the orders. Their counsel, Mian Faizan Ali, has also said a legal notice is being served on MCB.
MCB reported Rs26.5 billion in standalone profit after tax during the first half of 2026 and holds approximately Rs2.6 trillion in deposits. Against that scale, Rs21.67 million awarded to the six customers is a relatively small sum, roughly equivalent to only a few hours of the bank’s reported earnings.
Yet for the complainants, the money represents savings that they say disappeared from their accounts through transactions they did not authorize.
Sialkot case is not the only recent fraud allegation involving a former MCB manager. FIA arrested Imran Sajid, a former MCB manager wanted in connection with an alleged Rs10 million investment fraud, after he returned to Pakistan from the United Arab Emirates.
Sajid was detained at Allama Iqbal International Airport, Lahore, by the FIA’s Anti-Corruption and Economic Crimes Wing, Faisalabad. Officials said he had already been declared a proclaimed offender and placed on the Passport Control List, meaning his return triggered his arrest. The operation was conducted by an FIA team headed by Sub-Inspector Ajmal Hussain.
According to investigators, the money was allegedly diverted or misappropriated rather than invested as promised. When Ali demanded his money back, the suspects allegedly returned Rs2.5 million in cash and issued a cheque for another Rs2.5 million.
Banking Mohtasib itself continues to handle a significant volume of complaints. It reported receiving 21,392 complaints during the first half of 2026, while disposing of 18,482 cases and providing Rs762.76 million in financial relief to banking customers.
For the six Sialkot complainants, however, the legal battle may have ended while the financial battle continues. They have won before the Banking Mohtasib. They have won again on appeal. The compliance deadlines have expired. But according to the complainants, their money is still nowhere to be seen.
MCB Customers Still Waiting for Compensation after Winning Banking Fraud Case
