Main accused in Unity Foods case released, four others remanded

The reported release of the main accused in a major Federal Investigation Agency (FIA) investigation into alleged financial irregularities at Unity Foods Limited has raised serious questions, particularly as four other accused in the same case were granted physical remand.

Muhammad Farrukh Amin Godil, the former chief executive officer of Unity Foods and one of the main accused named in the FIA case, was arrested in Lahore on August 30 and subsequently taken to Karachi, according to information available to the media.

On August 31, he was produced before Judicial Magistrate Lala Asad after the FIA sought his physical remand for further investigation.

However, the court reportedly did not grant physical remand of Godil and ordered his release. He was allowed to leave the court, while four other accused in the case were given one-day physical remand for further investigation.

The reasons behind the different treatment of the accused are expected to become clearer after the detailed judicial order is made available.

The development is significant because Godil is among the five people formally named in an FIR registered by the FIA over alleged financial irregularities involving billions of rupees at Unity Foods, a major company listed on the Pakistan Stock Exchange.

The case stems from an investigation initiated after a referral by the Securities and Exchange Commission of Pakistan (SECP). The FIA’s Corporate Crime Circle in Karachi registered FIR No. CCC-KHI-15/26 on August 29, 2026.

Besides Godil, the FIR names his mother, Fehmida Amin, former chief financial officer Jalees Edhi, former director and later chief executive Amir Shehzad, and director Safdar Sajjad as accused.

The case has been registered under provisions of the Pakistan Penal Code dealing with criminal breach of trust, cheating, falsification of accounts, abetment and common intention.

Rs44.7 billion gap in accounts

One of the most serious allegations in the FIA case concerns an estimated Rs44.7 billion difference between Unity Foods’ published financial accounts and records maintained through the company’s internal SAP system.

According to the FIR, the SECP’s internal analysis identified major differences between the company’s published accounts and its internal financial records.

The investigation also refers to an alleged inventory shortfall of around Rs5.2 billion, aged receivables of about Rs5 billion and other inconsistencies in the company’s financial records.

The FIR further mentions that Unity Foods failed to prepare or publish its half-yearly accounts for the period ending December 31, 2025.

The FIA has alleged that the financial statements were authenticated by senior company officials, making the alleged discrepancies a central part of its investigation.

Alleged Rs5.3 billion payments to former CEO’s mother

Another major allegation concerns financial transactions involving Godil’s mother, Fehmida Amin.

According to the SECP referral cited in the FIR, the company’s books showed that loans worth billions of rupees had been received from her during the 2017-18 and 2018-19 financial years.

However, the FIA has alleged that there were no banking instruments or proper board approvals supporting the transactions.

The investigation alleges that a net amount of Rs5.318 billion of company funds was diverted through allegedly false loan entries in favour of Fehmida Amin.

Godil and former CFO Jalees Edhi have been named in connection with this allegation.

Questions over Rs2.87 billion rights issue funds

The FIA is also investigating the alleged use of money raised from shareholders through a rights issue.

In February 2019, Unity Foods raised Rs3.75 billion through a rights issue. The company had stated that the funds would be used for the acquisition of assets, expansion of its refinery and the construction of an oil storage terminal.

However, according to the FIR, the company could account for only Rs876.6 million of the money.

The FIA has alleged that there were no vouchers or banking records available for the remaining Rs2.873 billion.

The FIR alleges that investors were induced to provide money based on representations about how the funds would be used.

Rs2.6 billion advanced through Sunridge Foods

The FIA is also investigating transactions involving Sunridge Foods, a subsidiary of Unity Foods.

According to the FIR, Rs2.6 billion was allegedly advanced to two undisclosed parties without proper documentation, authorisation or required approvals.

The FIR states that around Rs2 billion remained outstanding and interest-free when the matter was reported to the Unity Foods board in February 2026.

The identity of the two parties that allegedly received the money remains an important part of the investigation.

Former subsidiaries and Rs12.45 billion bank liens

Another part of the FIA investigation concerns two former subsidiaries, Unity Technologies (Pvt) Ltd and Unity Plantations (Pvt) Ltd.

According to the FIR, the two companies were transferred to individuals linked to the group without proper due diligence and necessary approvals.

The FIA has alleged that the sale proceeds of Rs499.9 million and Rs787 million, respectively, remain outstanding.

The FIR further alleges that around Rs7.25 billion deposited with BankIslami Pakistan and Rs5.2 billion with Al Baraka Bank Pakistan were pledged against borrowings of one of the former subsidiaries.

The FIA is investigating whether the company’s financial resources were used to support entities that were no longer owned by Unity Foods.

Al-Shaheer transaction also under investigation

The FIA is also examining financial transactions related to Al-Shaheer Corporation.

According to the FIR, Godil signed a letter of understanding in December 2023 for the acquisition of shares in Al-Shaheer Corporation.

The investigation alleges that shares were acquired through different nominees, including Safdar Sajjad, Amir Shehzad and Fehmida Amin.

The FIA has also alleged that approximately Rs1.1 billion worth of goods were supplied from Unity Foods to Al-Shaheer Corporation without corresponding recovery of the amount.

The investigation is examining whether company resources were allegedly used for transactions that benefited individuals associated with the acquisition of Al-Shaheer Corporation.

Five accused named, others may also be investigated

The FIR formally names five individuals as accused. However, the FIA has indicated that the role of several other individuals may also be examined during the course of the investigation.

The agency is also expected to investigate the role of other directors and officers of Unity Foods, the recipients of the Rs2.6 billion advances, the purchasers of the former subsidiaries, financial intermediaries and the company’s statutory auditors.

The investigation could therefore expand as the FIA examines financial records and attempts to trace the movement of funds.

Why the latest court order matters

The reported release of Godil has become a major point of discussion because he is named in several key allegations contained in the FIR.

At the same time, four other accused were granted one-day physical remand, allowing the FIA additional time to question them and conduct further investigations.

It is not yet clear from the information available why physical remand was not granted for the principal accused while the other accused were remanded.

The detailed judicial order and future proceedings are expected to provide greater clarity on the matter.