President declares CDNS’ retrospective downward profit revision rate to a complainant ‘as maladministration’


While accepting a representation of an aggrieved citizen against a decision of the Wafaqi Mohtasib, President Dr Arif Alvi has directed the Central Directorate of National Savings (CDNS) to pay profit on the Special Saving Certificates (SSCs) as per the profit rate prevailing at the time of purchasing the certificates.

He said that CDNS had committed maladministration by revising the profit rates retrospectively and in contrary to the existing law, thus causing the citizen a loss of Rs 5.3 million, President Secretariat Press Wing said in a press release on Sunday.

The president issued these directions while deciding on a representation preferred by Yasmeen Merchant, who had purchased six SSCs from CDNS on 01.11.2019 at a profit rate of 12.7% for five certificates and 13.9% profit rate for the sixth certificate. Four days later on 05.11.2019, however, Finance Division issued a notification reducing the profit rates from 12.7% to 11% and 13.9% to 11.8% with retrospective effect from 01.11.2019, causing her a loss of Rs 5.3 million.

The president accepted her representation and held that the complainant was entitled to the profit rate prevailing on the date of issuance of certificates and that the change made through the notification did not apply to her investment in retrospective and, therefore, it could not affect her duly earned right of profit nor it can nullify it to her disadvantage.

He said that the notification issued was in the nature of subordinate or delegated legislation and took effect from the date of its publication in the official gazette and not from any prior date.

The president said that the rationale behind it was that only the parliament/legislative bodies could enact a law from a date prior to its enactment i.e., retrospectively and the government by itself, unless authorized by the statute, had no such authority or power to issue a notification operative from a date different from the date of its publication in the official gazette.

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