KARACHI, July 3 A district and sessions court has discharged two foreign exchange dealers in a money laundering case since the Federal Investigation Agency has not found any evidence against them.

The FIA submitted the final charge-sheet in court stating that no oral or documentary evidence came up on record against Zafar Paracha and his brother, Salman Paracha, of the Paracha International Exchange, to connect them with the alleged offence.

Rauf Ahmed Khan Lodhi and his brother, Farooq Ahmed Khan Lodhi, of Lodhi Enterprise Ltd, a franchise of Paracha exchange, the Paracha brothers and others were booked in a case pertaining to illegal transfer of billions of rupees abroad.

District and Sessions Judge (south) Fahim Ahmed Siddiqui accepted the final charge-sheet for hearing and also issued non-bailable warrants against the absconding accused till July 23.

According to the final charge-sheet, consequent upon an inquiry (56/09) of the FIA Crime Circle, Karachi, a case was registered against the Paracha and Lodhi brothers for their alleged involvement in theillegal business of Hawala to the tune of billions of rupees in collusion with Atif Polani of Al Zarooni Exchange, Dubai in violation of instructions and rules and regulations of the State Bank of Pakistan. It said that in the light of the investigation conducted so far and documentary and oral evidence collected, it had been found that Farooq Lodhi in collusion with his brother, Rauf Lodhi, Atif Polani and other directors and partners of the Zarooni Exchange had been found involved in the illegal business of Hawala.

The charge-sheet further stated that in order to run their illegal business of unlawful transfer of money from Pakistan and for disbursement of money in the country against the illegal foreign exchange, the accused persons opened and operated a large number of bogus bank accounts in the name of their employees through which the transactions of billion of rupees had taken place.

The Lodhi Enterprises was authorised to collect foreign exchange from overseas Pakistanis and others for remitting the same to Pakistan through the banking channel, but contrary to this the accused accumulated a major portion of foreign exchange in connivance with Atif Polani and others, it added.

“As far as the accused Zafar Paracha, son of Sultan Paracha, director and Salman Paracha son of Sultan Paracha, company secretary M/s Paracha International Exchange (Pvt) Ltd is concerned no oral/documentary evidence came on record to connect these persons with the crime committed by the owners of M/s Lodhi Enterprises, Karachi. No any person/employee of M/s Lodhi Enterprises and no any other witness gave any clue or named Zafar Paracha and Salman Paracha for involvement in the illegal business of Hawala,” the charge-sheet reads.

It stated that the scrutiny of franchise agreement between the franchiser and franchisee for exchange business exposed that the Paracha Exchange appointed the Lodhi Enterprises as their legal representative in their business, but the franchise company had agreed to abide the terms and conditions of the Paracha Exchange as well as the rules and regulations of the State Bank of Pakistan and the Security Exchange Commission of Pakistan.Rauf Lodhi and Farooq Lodhi were on bail and Atif Polani was shown in custody in another case while Mohammad Farooq, Ahmed Mujtaba of Ahmed the Al Hussain Money Exchange, Dubai, Muneer son of Mehboob Rehmatullah Moti of the Alpha Exchange, Dubai, Babur dealer of the Al Zarooni Exchange, Dubai and Faisal of Al Rahat Trading, Dubai were shown as absconding accused in the charge-sheet.

A case (FIR 07/2010) was registered against them under Sections 5, 8, 22 and 23 of the Foreign Exchange Regulation Act, 1947, Sections 7, 8 and 20 of the Prevention of Electronic Crimes Ordinance, 2007 and Sections 420, 467, 471, 477-A, 109 and 34 of the PPC at the FIA Crime Circle, Karachi.