ISLAMABAD (Dunya News) – An accountability court in Islamabad has handed down a significant verdict in a high-profile money laundering case, sentencing Lt Col (retd) Khalil ur Rehman, Chief Operating Officer of Bahria Town, to 10 years of rigorous imprisonment after finding him guilty of laundering nearly Rs1.7 billion through illegal financial channels.
The court also imposed a fine of Rs25 million and ordered the confiscation of assets deemed to have been acquired through unlawful means. Authorities said the case involved the transfer of large sums of money through hawala and hundi networks, methods that bypass formal banking systems and are widely considered illegal under Pakistani law.
Delivering the judgement, Judge Nasrullah Minallah of the accountability court ruled that the transfer of funds through hawala and hundi networks constitutes a serious financial crime that undermines the integrity of the country’s financial system.
The court observed that such activities weaken state institutions and facilitate the concealment of illicit wealth. It added that the state remains committed to taking strict legal action against individuals involved in financial crimes and illegal money transfers.
Investigators found that large sums linked to Bahria Town were allegedly moved abroad through informal money transfer channels over several years. The illegal transactions reportedly involved amounts reaching approximately Rs1.7 billion.
Investigation traced transactions back to 2007
According to details presented during the trial, the alleged laundering operations date back to 2007. Investigators said funds connected with the property development company were transferred overseas through hawala and hundi networks over an extended period.
The case was registered in August 2025 under FIR No. 19/25 under Sections 3 and 4 of the Anti-Money Laundering Act following an investigation conducted by the Federal Investigation Agency.
Authorities launched the probe after gathering financial records and intelligence suggesting the movement of substantial funds outside Pakistan through unofficial channels. Multiple FIRs were registered during the course of the investigation.
Trial concluded within six months
The court reviewed documentary evidence and heard testimonies from 12 witnesses before delivering its verdict. Despite what prosecutors described as repeated delaying tactics during the proceedings, the trial was completed in less than six months.
Officials said this marks the first money laundering trial conducted by the FIA’s Islamabad Circle to reach a final judicial decision.
During the proceedings, several individuals connected to the case were declared proclaimed offenders by the court, including property tycoon Malik Riaz, Ali Riaz and Shahid Qureshi.
Investigators said these individuals failed to appear before the court despite repeated notices. Authorities stated that legal proceedings against them will continue in accordance with the law.