KARACHI, Nov 26: A judicial magistrate (south) on Wednesday extended till Dec 1 the physical remand of two top officials of a renowned foreign exchange firm for their alleged involvement in a forex scam.

The suspects, Javed Khanani and Abdul Munaf Kalia of the Khanani and Kalia International, are facing trial for illegally transferring abroad billions of rupees from Pakistan.

The Federal Investigation Agency had arrested the suspects on the night of Nov 7 in Karachi and Lahore after initiating an inquiry on a money-laundering complaint. On Nov 21, the court had handed over both the suspects in the FIA custody till Nov 26.

The FIA officials on Wednesday produced the suspects before the Xth civil judge and judicial magistrate (south), Asif Ahmed, amid tight security. The investigators told the court that acting on information given by the arrested suspects they had recovered important data from 30 computers regarding the illegal transfer of Rs36.867 billion to the US, the UK, the UAE and other countries made between Jan 1, 2008 and Nov 6, 2008. The firm had opened 115,264 accounts in different banks, including 18,767 in Karachi, across the country for such transactions, they said.

They submitted that the seized data revealed that the foreign currency amounting up to Rs2.372 billion was found to be transferred abroad in June and July. They sought extension in the physical remand of both suspects, maintaining that further interrogation was needed.

The suspects’ counsel, Raza Hashmi, opposed the plea and requested the court to ask the investigators to produce the progress report of pervious remand. He also objected to a recovery memo produced by the FIA.

However, the court extended the remand and directed the officials to allow the family members of one of the suspects to meet him since the suspect told the judge that his daughter was suffering from thalassaemia and FIA officials barred her from meeting him. A case (76/2008) was registered against the suspects under Sections 5/8, 22/23 of the Foreign Exchange Regulation Act 1947 read with Section 7, 8 & 20 of the Prevention of Electronic Crimes Ordinance, 2007 and Sections 420, 467, 471, 477-A of the Pakistan Penal Code at the FIA crime circle branch, Karachi.

Earlier, the FIA Lahore had interrogated the suspects in a case (FIR 32/2008) registered under the Foreign Exchange Regulation Act 1947 at FIA crime circle, Lahore. The detained foreign exchange dealers were handed over to FIA Karachi by the authorities on Nov 20.

Both the suspects had moved bail applications to the court of district and sessions judge, south. The court will take up the applications for hearing on Thursday.