The Yellow Line case and the fake accounts legacy: tracing a Rs 5.55 billion money trail

A Karachi Sessions Court has remanded a former Project Director of the Yellow Line BRT project into Federal Investigation Agency (FIA)

KARACHI: A Karachi Sessions Court has remanded a former Project Director of the Yellow Line BRT project into Federal Investigation Agency (FIA) custody until September 22 in a case registered under foreign exchange and anti-money laundering laws. The investigation involves financial transactions exceeding Rs 5.55 billion and has drawn renewed attention to accountability and financial controls in major public infrastructure projects.

According to the FIA, financial monitoring identified around 1,100 transactions worth more than Rs 5.55 billion between 2012 and 2026 in accounts allegedly linked to the accused, his family members and associates. Investigators have also alleged the use of benami accounts, frontmen and hawala/hundi channels. The record further includes 24 foreign trips and payments amounting to Rs 35.5 million for seven life insurance policies.

The FIA told the Sessions Court that physical custody was necessary to examine the banking trail, identify possible accomplices and verify the sources and movement of funds. The court subsequently granted the agency remand.

The case follows an earlier investigation by the Anti-Corruption Establishment (ACE) Sindh into alleged irregularities in the World Bank-funded Yellow Line Bus Rapid Transit project. A central issue in that case is the alleged release of Rs 8.5 billion as advance payment. During bail proceedings, the Special Anti-Corruption Court raised questions about the payment mechanism and observed that the role of other officials also required examination. The accused’s bail plea was dismissed, while the investigation remains underway and a challan has yet to be submitted.

Meanwhile, according to official NAB sources, the National Accountability Bureau has authorised an inquiry into the advance payment, including whether the payment was made in accordance with applicable rules, what work had been completed against the released funds and whether procurement procedures were properly followed.

The Yellow Line BRT is a 21-kilometre mass transit corridor in Karachi funded through international development financing. Questions surrounding advance payments, project costs and procurement procedures have previously appeared in the public record.

The present investigation has also brought renewed attention to the earlier fake accounts case in Sindh. Supreme Court proceedings in that matter resulted in the formation of a Joint Investigation Team, which investigated allegations involving kickbacks, commissions, hawala and money laundering. Investigating agencies had also raised issues concerning access to relevant records during proceedings before the apex court.

Investigators in the current matter are examining whether similar financial mechanisms were used, including the movement of funds through accounts belonging to relatives or associates, alleged use of informal transfer channels and investments or assets that investigators consider disproportionate to known sources of income.

The accused’s defence, however, has rejected the allegations. Counsel has maintained that project payments were made after completion of required formalities, supported by bank guarantees and approved by the competent authorities under applicable international financial institution guidelines. The defence has also claimed that family transactions originated from legitimate sources and denied allegations involving hawala. Counsel argues that responsibility for project approvals cannot be placed solely on the Project Director.

At present, the matter remains under investigation and no court has established final guilt. The allegations are subject to evidence and judicial determination.

The case highlights the need for transparent forensic audits of major project payments, verification of bank guarantees, stronger financial monitoring and effective coordination among FIA, ACE and NAB.

All individuals named or implicated in the allegations are presumed innocent unless proven guilty through due process of law. Personal identification numbers, bank account details, CNICs and addresses have been withheld.