Major forex dealers arrested: FIA to seek Interpol assistance in forex scam

[Naveed Yaseen]

KKI director arrested in Lahore
MUHAMMAD SALEEM
LAHORE (November 09 2008): A raiding team of Federal Investigation Agency (FIA) has arrested Director of Khanani and Kalia International (Pvt) Ltd, Javed Khanani, in a case involving transfer of millions of dollars abroad, through 'Hundi'.

The FIA team made the arrest his residence in Gulberg area late on Friday night, following alleged transaction of huge amount of forex Gujranwala through Duniya Enterprises, which is a franchise of Khanani and Kalia. The FIA also obtained remand of Javed Khanani and is interrogating him to get further details of the scam.

His arrest, however, has caused scare among moneychangers in Lahore, as FIA is further keeping moneychangers under vigilance in a bid to stop illegal transfer of forex abroad. However, action would only be taken after accurate information and solid proofs.

Sources said that FIA is expanding the scope of its investigation, as some fake ID Card numbers were used by the moneychanger firm. Sources in the FIA told Business Recorder that after continuous depreciation in rupee value, the FIA Crime Circle team received information that some moneychangers and foreign exchange companies were involved in transfer of forex abroad through 'Hundi'.

On November 5, a team of FIA Crime Circle, Lahore, following a raid at Duniya Enterprises, Gujranwala, which is a franchise of Khanani and Kalia, arrested its Manager, Rustam Ali, and Accountant Tariq, with 'Hawala' money of Rs 786,000. The FIA team also seized computers and Identity Cards.

On their pointation, the FIA team late on Friday night arrested Director of Khanani and Kalia International (Pvt) Ltd, Javed Khanani, his Gulberg residence here. A case has been registered against him under Electronic Transaction Ordinance. Moreover, Khanani and Kalia's two offices situated at Mecleod Road and Gulberg, Lahore, were found locked.

Sources told this scribe that the State Bank of Pakistan had also called a report about this incident FIA high-ups. The central bank had introduced strict regulations and also warned the forex companies not to involve in illegal activities. The SBP may take action vis-à-vis cancellation of licence of Khanani and Kalia in the light of the report of FIA.

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