KARACHI, Dec 6: A judicial magistrate on Monday remanded the chairman of the National Insurance Company Limited in judicial custody in a land scam case till Dec 9. NICL chairman Ayaz Khan Niazi, who surrendered with his accomplices on Nov 23, has been charged with violating the rules in the procurement of land on high rates, causing huge financial losses to the national exchequer.

The Federal Investigation Agency produced the suspect before the judicial magistrate (east), Abdul Hafeez Methlo, who sent him to prison on judicial remand and directed the investigation officer to submit a charge-sheet on the next hearing.

According to the prosecution, the secretary of the ministry of commerce, Zafar Mehmood, sent a complaint to the FIA on Nov 16 asking the agency to investigate all purchases of land at different places and times by the NICL, and to register a separate case regarding the prima-facie embezzlement of NICL funds in the transaction of 10 acres purchased in August 2009 in Korangi at Rs90 million per acre, allegedly causing huge losses to the exchequer.

The chairman of the board of directors, investment committee of the NICL, sellers, valuators and others with the connivance of one another committed the offences of criminal breach of trust, misconduct, forgery and cheating, it added.

A case (FIR 21/10) was registered under Sections 409, 420, 468, 471 and 109 of the Pakistan Penal Code read with Section 5 (2) of the Prevention of Corruption Act-II, 1947 at the FIA Commercial Bank Circle, Karachi.