FIA registers case over alleged Rs6.6 billion fraud and tax evasion scheme

ISLAMABAD: The Federal Investigation Agency (FIA) has registered a first information report against several suspects, including company directors and bank officials, in connection with an alleged fraud involving more than Rs6.6 billion.

According to the FIR, the accused are alleged to have opened benami bank accounts by using the identities of individuals and then channelled the sales proceeds of Biscuits Manufacturing Private Limited Company through those accounts in an effort to avoid taxes.

The FIA said its inquiry found that money was first deposited into accounts maintained at one commercial bank and was later moved to accounts at another bank, from where substantial cash withdrawals were made.

Inquiry findings

Investigators stated that the accounts were operated through proxy signatures despite genuine biometric verification having been carried out. The agency also alleged that a bank official played a central role in the opening and operation of these accounts.

According to the FIA, the alleged arrangement caused major losses to the national exchequer through tax evasion. The case has been registered under multiple provisions of the Pakistan Penal Code as well as the Prevention of Corruption Act.

The agency said further investigation is under way to determine whether other officials were also involved in the matter.

Arrest made

The FIA said the banker named in the case has been arrested, while the investigation is continuing.

The case centres on allegations that company-related sales proceeds were routed through accounts not directly linked to the business, with investigators examining the role of both private individuals and banking personnel in the transactions described in the FIR.

Officials have not yet publicly detailed the full number of suspects named in the case, but the FIR covers multiple individuals, including directors of the company and bank staff, according to the agency.

The inquiry, as described by the FIA, focuses on the use of identities of individuals for opening accounts, the movement of funds between banks, and the subsequent withdrawal of large sums of cash. The agency maintains that these steps were part of a broader mechanism aimed at concealing transactions and evading tax liabilities.

The FIA stated that “the scheme caused significant losses to the national exchequer through tax evasion.”

Further proceedings in the case will now depend on the ongoing investigation, which the FIA says is also examining the possible involvement of additional officials.