ISLAMABAD (MNN); An additional sessions court in Islamabad on Saturday convicted a retired army officer in a high-profile money laundering case, sentencing him to 10 years in prison and imposing a fine of Rs25 million.
Additional Sessions Judge (West) Nasruminallah Baloch found retired Colonel Khalilur Rehman, vice chief executive of Bahria Town, guilty of laundering around Rs1.6 billion. The case had been registered last year by the Federal Investigation Agency’s Anti-Money Laundering Circle.
In its verdict, the court awarded the convict 10 years of rigorous imprisonment and directed him to pay a fine of Rs25 million.
The court also ruled that if the fine is not paid, the convict would serve an additional one month of simple imprisonment. Furthermore, it ordered the confiscation of properties and assets obtained through the illegal money laundering scheme.
According to the detailed judgment, the court held the accused guilty under Sections 3 and 4 of the Anti-Money Laundering Act 2010, which deal with the offence of money laundering and the punishment for such crimes.
The FIA investigation alleged that the accused had been involved in a complex system of financial transactions designed to conceal the origin of illegal funds. Investigators claimed the funds were routed through multiple third parties and layered through various financial channels to disguise their source.
The court noted that the laundered amount of approximately Rs1.6 billion, combined with systematic layering and concealment through intermediaries, constituted serious economic harm to society.
“The magnitude of the Rs1.6 billion laundered amount, systematic layering, concealment through third parties and the absence of mitigation highlight the economic damage caused to society,” the judge observed while announcing the verdict.
The judgment was delivered after a dramatic court hearing earlier in the day. At the start of the proceedings, the defence counsel filed an application seeking exemption from personal appearance for the accused.
However, the court rejected the request, noting that the case had previously been adjourned at the request of the defence specifically for the announcement of the verdict.
With the exemption plea dismissed and the accused absent from the court, the judge proceeded to announce the sentence.
A large team of defence lawyers, including Bahadur Ali Khan, Barrister Mansoor Azam and Rana Muhammad Usman, appeared before the court, along with the prosecution team representing the Federal Investigation Agency.
Following the conviction, the court issued a warrant directing the superintendent of Rawalpindi Central Jail to take custody of the convict once he is arrested and produced by the police.
In a statement issued after the verdict, the FIA reaffirmed its commitment to continue taking action against money laundering and financial crimes without discrimination.
The case has added to the ongoing legal challenges faced by individuals associated with Bahria Town.
Property tycoon and Bahria Town founder Malik Riaz has been declared an absconder in the Al-Qadir Trust case since January 2024, while several Bahria Town properties in different cities have also faced legal proceedings in recent years.
The Al-Qadir Trust case alleges that former prime minister Imran Khan and his wife received billions of rupees and hundreds of kanals of land from Bahria Town in return for legalising Rs50 billion that had earlier been identified and repatriated to Pakistan by the United Kingdom during the previous PTI government.
In August 2025, when six Bahria Town properties in Rawalpindi and Islamabad were put up for auction, Malik Riaz had called for dialogue and a dignified resolution to the dispute.
