A recent investigation by the Federal Board of Revenue (FBR) has unveiled a suspected money laundering and tax evasion operation involving billions of rupees attributed to Vicky Trading Pvt. Ltd, a trading company purportedly associated with Bahria Town, one of Pakistan’s prominent real estate developers.
Documents obtained by Dawn reveal ongoing proceedings against Vicky Trading Pvt. Ltd under the Anti-Money Laundering Act (AMLA) 2010, taking place at a specialized court overseeing customs, taxation, and anti-smuggling matters. According to the FBR report, Vicky Trading Pvt. Ltd maintained 18 bank accounts across the country.
The report alleges that Vicky Trading Pvt. Ltd, with all its directors being family members and closely linked to Bahria Town, received approximately Rs319 billion from Bahria Town between 2014 and 2018. The funds were purportedly transferred to various bank accounts held by Vicky Trading Pvt. Ltd.
Initiated on July 1, 2019, following a complaint lodged by Mohammad Ejaz, an Inspector of Intelligence and Investigation at FBR, the inquiry focused on suspicions of money laundering amounting to Rs23 billion. Ejaz accused the directors of Vicky Trading Pvt. Ltd of engaging in land purchase activities on behalf of Bahria Town.
The inquiry highlighted several irregularities in the company’s accounts, indicating potential money laundering and tax evasion activities. Allegations included deliberate concealment of assets, failure to disclose transactions involving substantial sums, and tax evasion.
Subsequent to the preliminary inquiry, show-cause notices were issued to the accused under Section 9 of the AMLA 2010. Investigations revealed that while Vicky Trading Pvt. Ltd claimed to be primarily engaged in trading and landholding activities on behalf of other entities, it lacked staff on its payroll to manage transactions adequately.
Furthermore, the inquiry found discrepancies amounting to Rs82.825 billion in the company’s financial records, leading to a demand of Rs23.541 billion. The investigation concluded that Vicky Trading Pvt. Ltd was involved in money laundering by concealing income from undisclosed sources.
In response, Vicky Trading Pvt. Ltd contested the FBR’s investigation, arguing that it exceeded its jurisdiction by examining records dating back to 2013 and portraying the inquiry as excessive and harassing. The company asserted its compliance with tax regulations and its contribution to national revenue.
Legal proceedings against the accused directors of Vicky Trading Pvt. Ltd, including Waqas Riffat, Waseem Riffat, Bilal Bashir, and Mohammad Awais, are ongoing at the special court for customs, taxation, and anti-money laundering. However, progress has been slow, with notices issued to the defendants but no significant developments reported thus far.
