- FIR registered against construction company M/s HSJ Builders and Developers
ISLAMABAD: Customs Intelligence has registered a First Information Report (FIR) on charges of money laundering against M/s HSJ Builders and Developers.
Sources said that Customs Intelligence Karachi unearthed a unique case of money laundering of over Rs3 billion involving placement, mingling, layering of proceeds of crime and its integration in the national economy.
The costumes intelligence sprung action following a tip-off that owners/directors/partners of a Group of Companies were involved in carrying out the placement, parking and integration of proceeds of crime in a residential project known as “HSJ ICON” under the umbrella of a group entity/company “HSJ Construction.” It was found through further enquiry that the project was neither registered with the FBR, nor a tax-filer.
HSJ Builders and Developers is a firm/Association of Persons comprising – accused persons – Muhammad Hanif Jewani and Ahmed Hanif Jewani, father and son respectively, who, during preliminary investigation were found involved in the commission of offence under Section 32 of the Customs Act 1969 punishable under clause (14) of Section 156(1) of the Act.
It surfaced during initial enquiry that the aforesaid predicate offence had been committed by the accused persons through use of another company HSJ Metals pvt. Ltd. which was involved in illegal moving of 14,392 MT of Iron and Steel waste and scrap and Silico-Manganese from a private bonded warehouse on Super Highway, Nooriabad.
As a result of stocktaking, only 3,761.89 metric tons plus approximately remaining stock of 700 to 1000 metric tons were found available instead of balance quantity of 18,854 metric tons as on 20.03.2023, thereby establishing that the importer had unlawfully removed 14,392 metric tons of in-bonded goods valued at Rs2.17 billion without payment of taxes to the tune of Rs716 million.
Thc liability of the importer/licensee was held at Rs716 million in terms of evasion of duty/taxes along with default/additional surcharge to be calculated at the time of actual payment and personal Penalty of Rs10 million.
That resultant recovery proceedings initiated under section 202 of Customs Act 1969 for Rs1.38 billion as of 30th June 2023 did not succeed due to the fact that the bank accounts of HSJ Metals Pvt. Ltd. had no funds whatsoever available in the said bank accounts.
It is reported that right up-to the time when the wrong-doing of the accused persons surfaced, they had been manufacturing Steel Bars (Sarya) which were sold in the market as well as used in the construction of HSJ ICON.
In this manner, the accused persons, other than using the Steel Bars (Sarya) made from non-duty/taxes paid Waste Scrap and Silico Manganese, also diverted the funds obtained from the sale of illegally manufactured Steel Bars (Sarya) towards the construction of HSJ ICON.
It is accordingly established beyond an iota of doubt that the accused persons are involved in money laundering by using the “proceeds of crime” by way of developing and progressing the project HSJ ICON from the funds of HSJ Metals pvt Ltd, which should have been paid to government exchequer, while at the same time receiving monies from the allottees of flats and shops in the project thus layering the scam in an organized manner.
The facts revolving around the being such that the same individuals operating and managing two sister entities, one of which is involved in generation of proceeds of crime and the other in placement and integration of such proceeds, through an unregistered and non-filer entity as an intermediary, the case falls within the ambit of the provisions of the Anti-Money Laundering Act, 2010.
Accordingly, the modus operandi mentioned as above resulted in money-laundering to the tune of Rs3.5 billion (evaded duty/taxes: Rs716 million, surcharge (calculated up-to 30.06.2023): Rs665 million and Goods Value: Rs2.17 billion) by Muhammad HanifJewani and Ahmed hanif Jewani of HSJ Metals pvt. Ltd, HSJ Construction and HSJ Builders and Developers, through commission of, inter alia, the predicate offence in terms of Section 32 of the Customs Act 1969 punishable under clause Section 56 of Customs Act. 1969 within the meaning of Sections 3 and 4 of the Anti-Money Laundering Act, 2010 read with Section-VI(e) of its First Schedule.
The investigation in the matter is underway to ascertain the role of other directors, partners, owners of I-1,1 Group of Companies and their accomplices and facilitators.
