LAHORE: In a new twist to the controversy over the Karachi Cotton Exchange building, the Federal Investigation Agency (FIA) has estimated that the “illegal occupation and commercial exploitation” of the historic building over the years has caused a loss of Rs16 billion to the national exchequer.

The Anti-Corruption Circle of the agency sent notices to the current and past directors of the Exchange for the recovery of the amount.

According to the notice sent by the FIA’s Anti-Corruption Circle Karachi on March 12, the investigation targets officials linked to the Evacuee Trust Property Board (ETPB), Karachi Metropolitan Corporation (KMC), and Karachi Cotton Association (KCA).

The case pertains to the “illegal occupation” and “misuse” of the Cotton Exchange Building located in Serai Quarters, a property belonging to the federal government.

Issues notices to current and former directors for recovery of hefty amount

The notice says that an inquiry has uncovered evidence of “fake and forged ownership and tenancy documents”, along with illegal tenancy transfers through informal arrangements commonly known as “Pagri.” Authorities are also examining the financial gains generated from these illegal activities.

As part of a parallel financial investigation under the Anti-Money Laundering Act 2010, the FIA has sought detailed banking records of the accused individuals from all commercial banks. These include information on local and foreign currency accounts, account opening documents, transaction histories, and details of suspicious and cash transactions.

Banks have been directed to submit records of all accounts linked to the accused, including credit turnover, counterparties, and any Suspicious Transaction Reports (STRs) or Currency Transaction Reports (CTRs) filed.

While the deadline for compliance was set as March 16, the FIA has received no response from the accused individuals so far.

The list of accused persons includes several prominent individuals, among them Khawaja M. Zubair, Amin Hashwani, Faisal Nasim, and others, as investigators attempt to trace the movement, layering, and integration of alleged illegal proceeds.

Officials say the probe aims not only to fix responsibility for the illegal occupation of public property but also to uncover potential money laundering networks linked to the occupation.

It may be recalled that the controversial building has been sealed by the FIA and ETPB for the last 110 days and since then no spot rates have been issued by the Karachi Cotton Association.

Aptma, FPCCI urged to intervene

The affectees of the Cotton Exchange building have written to various business bodies seeking their support over the continued sealing of the building, saying the move has rendered around 5,000 employees jobless and disrupted daily business worth millions.

In a joint appeal to the All Pakistan Textile Mills Association (Aptma), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry, Pakistan Cotton Ginners Association and Pakistan Cotton Brokers Association, the victims urged them to intervene and resolve the issue at the earliest.

They said that around 320 registered cotton brokers have also been left without work, while ongoing business losses have mounted to millions of rupees daily, despite a pending verdict from the Sindh High Court, the authorities have continued to issue notices and seek documentation from tenants, along with claims of heavy fines.

Published in Dawn, March 28th, 2026