ISLAMABAD – Another blow to real estate tycoon Malik Riaz and Bahria Town as a court sentenced Vice Chief Executive, retired Colonel Khalilur Rehman, to one year in prison in a case involving illegal foreign exchange, hawala and hundi operations, and unlawful property dealings.
The court also convicted two co-accused, hawala operator Imran Kaka and property dealer Mushtaq Ahmed, after concluding that the prosecution had successfully established the charges against them. Each of the three convicts was handed a one-year jail term and fined Rs500,000.
The latest conviction comes just months after retired Col Khalilur Rehman was sentenced to 10 years in prison in a separate Rs1.6 billion money laundering case. In that judgment, the court also imposed a Rs25 million fine, ordered the confiscation of assets connected to the offence, and ruled that additional imprisonment would apply if the fine remained unpaid.
Federal Investigation Agency (FIA) earlier said Rehman concealed source of illicit funds through a complex network of layered financial transactions and third-party bank accounts. The court observed that the scale of the alleged laundering operation and the sophisticated methods used to disguise the money trail warranted a stringent sentence.
The fresh ruling adds to the mounting legal challenges surrounding Bahria Town. Its founder, Malik Riaz, continues to be declared an absconder in the Al-Qadir Trust case, while several Bahria Town projects and properties across Pakistan remain under legal scrutiny.
FIA said the conviction underscores its commitment to pursuing money laundering, illegal foreign exchange operations, hawala and hundi networks, and other financial crimes without discrimination.
Malik Riaz remains an absconder in the Al-Qadir Trust case, while the Supreme Court previously approved a Rs460 billion settlement over irregularities linked to land acquired for Bahria Town Karachi. Accountability authorities have also investigated the alleged illegal transfer of thousands of acres of state land for the housing project.
Bahria Town officials faced convictions in money laundering and illegal foreign exchange cases, with investigators alleging the use of layered financial transactions, third-party accounts, and hawala and hundi networks to conceal illicit funds.
The company has also faced asset freezes, tax recovery actions, and regulatory penalties, including proceedings involving Bahria Icon Tower and a fine imposed by the Competition Commission of Pakistan over alleged anti-competitive practices.
