In a Rs1.7 billion money laundering case, the Bahria Town COO was given a 10-year sentence.

In a landmark decision in a well-known money laundering case, an accountability court in Islamabad found Lt Col (retd) Khalil ur Rehman, the Chief Operating Officer of Bahria Town, guilty of laundering almost Rs1.7 billion through illicit financial channels and sentenced him to ten years of rigorous imprisonment.

In addition, the court ordered the confiscation of assets that were thought to have been obtained illegally and levied a punishment of Rs. 25 million. According to authorities, the case involved the movement of substantial sums of money using hundi and hawala networks, which circumvent official banking institutions and are generally regarded as unlawful under Pakistani law.

Judge Nasrullah Minallah of the accountability court delivered the ruling, concluding that money transfers via hundi and hawala networks are a major financial crime that compromises the integrity of the nation’s financial system.

According to the court, these kinds of actions erode governmental institutions and make it easier to hide illegal income. It further stated that the state is still determined to prosecute those responsible for financial crimes and illicit money transfers.

Investigators discovered that over a number of years, sizable sums connected to Bahria Town were purportedly transferred overseas using unofficial money transfer routes. According to reports, the illicit transactions involved sums of up to Rs1.7 billion.

Transactions dating back to 2007 were found via investigation.

Details revealed throughout the trial indicate that the purported money laundering activities began around 2007. According to investigators, money associated with the real estate development company was moved abroad over an extended period of time via hawala and hundi networks.

After an inquiry by the Federal inquiry Agency, the case was filed in August 2025 under FIR No. 19/25 under Sections 3 and 4 of the Anti-Money Laundering Act.

After obtaining bank records and intelligence indicating the transfer of significant sums of money outside of Pakistan through illicit means, authorities began the investigation. While the investigation was underway, more FIRs were filed.

The trial was over after six months.

Before rendering its decision, the court heard testimony from 12 witnesses and examined documentary evidence. The trial was finished in less than six months, despite what the prosecution said were continuous attempts to delay the proceedings.

According to officials, this is the first money laundering trial that the FIA’s Islamabad Circle has seen through to a final court ruling.

The court declared a number of those involved in the case to be proclaimed offenders during the proceedings, including Shahid Qureshi, Ali Riaz, and property tycoon Malik Riaz.

Despite many notices, investigators stated these people did not show up for court. According to authorities, legal action against them will commence in line with the law.