KARACHI: Already facing multiple probes ranging from alleged irregularities in land auctions to the unlawful transfer and allocation of government land to real estate giant Bahria Town, the Malir Development Authority (MDA) once again came under scrutiny on Wednesday after the Federal Investigation Agency (FIA) arrested two of the development authority’s employees for their alleged involvement in running a network of fake bank challans.

An FIA spokesperson said that the agency’s Commercial Banking Circle, Karachi, conducted a raid in Al-Hilal Society, located on University Road and arrested Waqas, director of land management at the MDA, and Yameen, a dispatch rider.

The FIA also recovered Rs20 million in cash and stamps bearing the names of different banks during the operation, pointing to an alleged network involved in generating and using fake bank challans to facilitate financial fraud.

Agency claims to have recovered Rs20m in cash and stamps bearing names of different banks during raid

“The recovered cash is believed to have been generated through these alleged illegal activities. A case has been registered in connection with the incident, while further investigation is underway,” the official said.

According to a statement, the arrested suspects disclosed that they used fake bank stamps but did not deposit the corresponding cash. The recovered amount was allegedly part of the proceeds of this illegal activity.

The cases involving MDA officials are not limited to the latest allegations of forgery and illegal land dealings. Several officials of the authority have faced similar cases in the past, with some of the investigations and legal proceedings still ongoing.

In November 2023, the Anti-Corruption Establishment Sindh registered two separate cases against several serving and retired officers and private individuals on charges of corruption, misuse of power and fraud in the allotment of plots through balloting.

The officers facing corruption charges included the former director general of the MDA, along with several serving directors and private contractors.

Likewise, in February 2025, the National Accountability Bureau filed a reference against several former senior government functionaries and officials for converting, exchanging and transferring government land to Bahria Town.

The accountability watchdog alleged that the entire hierarchy of the executive, the revenue board and the MDA had conspired to cede valuable public property to an individual in exchange for personal gains.

The fresh arrests have raised further questions about the possible involvement of other officials within the MDA and individuals outside the authority in the alleged fraud.

The case has brought renewed attention to the authority’s internal financial procedures and the mechanisms in place to verify payments made against government transactions.

However, the FIA maintains that the extent of the alleged network and whether other officials or bank employees facilitated the fraud remain to be established through the ongoing investigation.

“The FIA is also ascertaining the possible involvement of other MDA officials and employees of various banks. An inquiry is underway to identify more suspects allegedly involved in the network,” said the spokesman.

Published in Dawn, November 12th, 2026