Industrialist, former FESCO chiefs held in Rs11.96bn power fraud probe

The Federal Investigation Agency (FIA) has arrested a leading Faisalabad-based industrialist and two former chief

The Federal Investigation Agency (FIA) has arrested a leading Faisalabad-based industrialist and two former chief executives of the Faisalabad Electric Supply Company (FESCO) in connection with an alleged electricity fraud and corruption case involving billions of rupees.

The suspects, including industrialist Mian Idris, were taken into custody at Lahore’s Allama Iqbal International Airport. Officials said they were preparing to board a flight to the United States when they were intercepted. After completing initial formalities, they were handed over to the FIA’s Faisalabad team for further investigation.

According to security officials, the FIA registered the case on July 18 and placed the names of the suspects on the Exit Control List (ECL), preventing them from leaving Pakistan.

The FIA alleges that the accused caused an estimated loss of Rs11.96 billion to the national exchequer through irregularities in electricity generation and supply agreements. Investigators claim private companies received unlawful financial benefits through violations of regulatory rules and misuse of official authority.

The FIR names 13 individuals, including six former FESCO chief executives, an additional director general of the National Electric Power Regulatory Authority (NEPRA), company directors and other officials. The case was registered after the completion of an FIA anti-corruption inquiry, during which investigators said they collected documentary evidence supporting the allegations.

According to the investigation, Sitara Energy Limited was granted a power generation licence under specific conditions. The FIA alleges that the company exceeded those conditions by selling electricity to FESCO without fully complying with regulatory requirements. Investigators claim there were violations of the Power Purchase Agreement (PPA), NEPRA approvals, tariff rules and other legal procedures governing electricity sales.

The agency further alleges that some public officials misused their authority to facilitate financial gains for private companies. Investigators also claim that regulatory oversight was not effectively exercised, allowing the alleged irregularities to continue for several years.

The accused include Mian Idris and directors associated with Sitara Group of Industries, Sitara Energy Limited and Sitara Chemical Industries Limited. Several former FESCO chief executives and senior regulatory officials have also been nominated in the case.

The FIA has registered the case under various provisions of the Prevention of Corruption Act and the Pakistan Penal Code. The charges include alleged fraud, forgery, criminal breach of trust, abuse of authority and the use of forged documents.

An FIA investigation officer, speaking on condition of anonymity, said Mian Idris is also facing separate investigations into alleged financial irregularities involving independent power projects. The officer further claimed that additional inquiries are underway over alleged gas and electricity theft involving companies linked to the industrialist.

Investigators allege that between 2007 and 2015, the companies sold electricity to FESCO at rates higher than those approved by regulators while purchasing electricity for their own industrial operations at significantly lower rates. The FIA claims these transactions caused heavy financial losses to the national treasury.

The agency said the investigation is continuing. Officials added that further arrests or legal action may follow if additional evidence emerges during the course of the inquiry.