ISLAMABAD: An additional sessions court 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 Col Khalilur Rehman, the vice chief executive of Bahria Town, guilty of laundering approximately Rs1.6 billion. The case was registered by the Federal Investigation Agency’s (FIA) Anti-Money Laundering Circle last year.
The court sentenced Rehman to 10 years rigorous imprisonment and imposed a fine of Rs25m.
It was further ordered that, in the event of default on the fine, the convict would undergo an additional one month of simple imprisonment. Crucially, the court also ordered the forfeiture of property and assets obtained through money laundering.
According to the detailed judgment, the court held Rehman accountable under Sections 3 (offence of money laundering) and 4 (punishment for money laundering) of the Anti-Money Laundering Act 2010.
The FIA’s investigation had alleged that the accused was involved in systematically layering financial transactions and channelling funds through third parties to obscure their true origin, which the court deemed “proceeds of crime”.
“The magnitude of Rs1.6 billion laundered amount, systematic layering, concealment through third parties and absence of mitigation, the economic [damage] caused to society,” the judge noted in the court order while announcing the sentence.
The verdict was announced after a dramatic day in court. As the proceedings commenced, the convict’s counsel filed an exemption application seeking to excuse his client’s personal attendance.
The court, however, rejected the plea, noting that the case had already been adjourned once before at the lawyers’ request, specifically for the pronouncement of the judgment. With the exemption plea dismissed and the accused marked absent, the judge proceeded to deliver the verdict.
A large team of defence lawyers, including Bahadur Ali Khan, Barrister Mansoor Azam and Rana Muhammad Usman, were present in the court for the proceedings, alongside the prosecution team from the FIA.
Following the conviction, a warrant of commitment was issued to the superintendent of Rawalpindi’s Central Jail. The warrant authorises the jail authorities to receive the convict and have him serve his sentence once he is arrested and produced by the police.
In a subsequent statement, the FIA reiterated its resolve to continue its crackdown against money laundering and financial fraud without any discrimination.
The development adds to the legal woes of those linked with Bahria Town.
Property tycoon and Bahria Town founder Malik Riaz has been an absconder in the Al-Qadir Trust case since January 2024, while his Bahria Town properties across the country have also faced legal woes in recent years.
The Al-Qadir Trust case alleged that ex-premier Imran Khan and his wife obtained billions of rupees and land worth hundreds of kanals from Bahria Town for legalising Rs50 billion that was identified and returned to the country by the UK during the previous PTI government.
In August 2025, when six Bahria Town properties in Rawalpindi and Islamabad faced auctions, Riaz had called for “dialogue and a dignified solution”.
