The Federal Investigation Agency (FIA) recently registered a massive case of money laundering, fraud, and tax evasion. The FIA booked seven individuals in Lahore. These include the directors of Innovative Biscuits Private Limited and a bank official.
How the Multi-Billion Rupee Fraud Unfolded
The FIA’s Commercial Banking Circle (CBC) Lahore conducted a thorough inquiry. Consequently, they uncovered a massive financial scam. The suspects evaded taxes on sale transactions worth billions of rupees. Specifically, they hid Rs 6.62 billion in sales proceeds belonging to Innovative Biscuits.
Sheikh Munir Hussain, CEO and Director, and Amir Raza, Director and Proprietor, allegedly orchestrated this scheme. Instead of depositing the money into the company’s declared accounts, they parked the funds in a different bank. Later, they transferred this money into benami (proxy) accounts. Subsequently, they withdrew the cash to avoid detection.
The Modus Operandi
Bank officer Mazhar Ejaz played a critical role in this fraud. He introduced the accounts and tagged them. Furthermore, he and other bank staff opened benami accounts using the CNICs of Abdullah Maqsood, Arsalan Ahmad, and Maqsood Ahmad.
Interestingly, forensic reports revealed a clever tactic. The suspects opened these accounts with genuine biometric verifications and routine signatures. However, they operated the accounts using proxy signatures. Additionally, Abdullah Maqsood received five pay orders worth Rs 92 million from these accounts in his favor. Ultimately, this massive tax evasion caused a loss of millions of rupees to the national exchequer.
Current Legal Action Against Innovative Biscuits Directors & Arrests
The FIA has taken strict legal action. They registered a case against Sheikh Munir, Amir Raza, Abdullah Maqsood, Arsalan Ahmed, Maqsood Ahmed, Muhammad Umair Khan, and Mazhar Ejaz. The authorities invoked sections 409, 419, 420, 467, 468, 471, 477-A, 34, and 109 of the Pakistan Penal Code, read with section 5(2) 47 of the Prevention of Corruption Act, 1947.
Currently, the FIA has arrested banker Mazhar Ejaz. Moreover, raids are actively underway to apprehend the remaining suspects. Moving forward, the investigation will determine the exact role of other bank officials, company staff, or private individuals involved in the scam.
