Modaraba scam: One more reference filed against five accused

Reference filed in accountability court against Bolan City MD and four others.

RAWALPINDI:

One more reference has been filed in the multi-billion Modaraba scandal in the Accountability Court of Islamabad in the multi-billion- Modaraba scandal. 

The reference has been filed by the National Accountability Bureau (NAB) Rawalpindi against Muhammad Irfan Managing Director Bolan City, a private housing society, Hamid Nawaz, Chaudhry Umer Farooq, Muhammad Jareer Afzal and Adeel Nasir Butt on charges of corruption and cheating public in the name of Modaraba, an Islamic mode of investment.

The accountability bureau’s regional office received 164 complaints in the Rs140.68 million case and attached 513 kanals of the housing society’s land. During inquiry it transpired that the accused induced public to make investment with Al-Hammad Associates and in Bolan City housing project against attractive profits.

The accused persons executed Modaraba/Musharika agreements with the investors to gain their confidence. Initially they paid abnormal profits to the investors but later on stopped the payment and misappropriated the hard-earned money of the investors amounting to Rs140,682,000.

The regional bureau has so far received 40,139 complaints and currently investigating 93 cases. The bureau has recovered Rs1.691 billion and filed three references in the accountability court.

The bureau has so far arrested 14 people.

Published in The Express Tribune, September 10^th, 2014.