Bahria Town COO Sentenced To 10 Years In Rs1.7 Billion Money Laundering Case
An accountability court in Islamabad has sentenced Lt Col (retd) Khalil ur Rehman, Chief Operating Officer of Bahria Town, to 10 years of rigorous imprisonment after finding him guilty in a major money laundering case involving nearly Rs1.7 billion.
The verdict was delivered by Accountability Court Judge Nasrullah Minallah, who ruled that the accused had transferred large sums of money through illegal hawala and hundi networks. These informal systems allow funds to be moved outside official banking channels and are prohibited under Pakistani financial laws.
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In addition to the prison sentence, the court imposed a fine of Rs25 million on Khalil ur Rehman. The judgement also ordered the confiscation of assets that were determined to have been obtained through illegal means.
According to the court, using hawala and hundi systems to transfer money constitutes a serious financial offence and poses a significant threat to the integrity of Pakistan’s financial system. The judge observed that such practices weaken state institutions and enable individuals to conceal illicit wealth. The court emphasized that authorities remain committed to taking strict action against financial crimes and illegal money transfers.
Investigations revealed that large sums associated with Bahria Town were allegedly transferred abroad through informal channels over several years. Officials stated that the total amount involved in the illegal transactions reached approximately Rs1.7 billion.
During the trial, investigators told the court that the alleged laundering activities date back to 2007. Financial records presented during the proceedings suggested that funds connected with the real estate developer were moved overseas through hawala and hundi networks over an extended period.
The case was formally registered in August 2025 under FIR No. 19/25 under Sections 3 and 4 of the Anti-Money Laundering Act. The investigation was carried out by the Federal Investigation Agency after authorities gathered financial data and intelligence indicating the movement of significant funds outside Pakistan through unofficial transfer methods.
Officials also disclosed that several FIRs were filed during the course of the investigation as the probe expanded.
The trial proceeded swiftly, concluding in less than six months. The court examined documentary evidence and heard testimonies from 12 witnesses before announcing the final verdict. Prosecutors had earlier claimed that attempts were made to delay the proceedings, but the court completed the trial within a relatively short timeframe.
Authorities said the case is significant because it represents the first money laundering trial conducted by the FIA’s Islamabad Circle that has reached a final judicial verdict.
During the proceedings, the court also declared several individuals as proclaimed offenders after they failed to appear despite repeated notices. Among those declared absconders were property tycoon Malik Riaz, Ali Riaz, and Shahid Qureshi.
Investigators said the accused individuals did not respond to multiple court summons, prompting the court to declare them proclaimed offenders. Officials stated that legal proceedings against them will continue in accordance with the law.
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