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Court Sentences Bahria Town Executive to 10 Years in Rs1.6bn Money Laundering Case
An Islamabad court has sentenced retired Col Khalilur Rehman, vice chief executive of Bahria Town, to 10 years in prison and fined him Rs25 million after convicting him of laundering Rs1.6 billion, according to the FIA.
ND
by News Desk
2026-03-07
Court Sentences Bahria Town Executive to 10 Years in Rs1.6bn Money Laundering Case

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 approximately Rs1.6 billion.

The case had been registered last year by the Federal Investigation Agency (FIA) through its Anti-Money Laundering Circle.

According to the court’s verdict, Rehman was sentenced to 10 years of rigorous imprisonment and fined Rs25 million. The court also ordered that if the fine is not paid, the convict will face an additional month of simple imprisonment.

In addition to the sentence, the court directed that properties and assets obtained through money laundering be confiscated.

The judgment held the accused accountable under Sections 3 and 4 of the Anti-Money Laundering Act 2010, which deal with the offence and punishment for money laundering.

According to the FIA investigation, the accused was involved in systematically layering financial transactions and channelling funds through third parties to conceal their origins. The court ruled that the funds constituted “proceeds of crime.”

In the written order, the judge highlighted the seriousness of the offence, noting the “magnitude of the Rs1.6 billion laundered amount, systematic layering, concealment through third parties and the economic damage caused to society.”

The verdict was delivered after a dramatic court hearing. At the start of proceedings, the defence counsel submitted a request seeking exemption from personal appearance for the accused.

The court rejected the plea, pointing out that the matter had already been adjourned once at the request of the defence specifically for the pronouncement of the judgment. With the accused marked absent, the judge proceeded with the verdict.

A large team of defence lawyers, including Bahadur Ali Khan, Barrister Mansoor Azam and Rana Muhammad Usman, appeared in court during the proceedings along with prosecutors representing the FIA.

Following the conviction, the court issued a warrant of commitment to the superintendent of Rawalpindi’s Central Jail, directing authorities to receive the convict once he is arrested and produced before them.

In a statement issued after the verdict, the FIA reiterated its commitment to continuing its crackdown on money laundering and financial crimes without discrimination.

The development adds to the growing legal challenges faced by individuals linked with Bahria Town.

Property tycoon Malik Riaz, the founder of Bahria Town, has been declared an absconder in the Al-Qadir Trust Case since January 2024.

The case alleges that former prime minister Imran Khan and his wife Bushra Bibi received billions of rupees and land from Bahria Town in exchange for legalising Rs50 billion that had been identified and returned to Pakistan by the United Kingdom during the PTI government.

In August 2025, several Bahria Town properties in Rawalpindi and Islamabad were put up for auction as part of legal proceedings, prompting Malik Riaz to call for dialogue and a “dignified solution.”
Tagged:

FIA

MoneyLaundering

IslamabadCourt

BahriaTown
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