LAHORE, Aug 23 Zarco Exchange Company has illegally transferred over Rs70 billion from Pakistan, besides making transactions worth Rs35 billion abroad which could not reach here, during the last four to five years, its chief executive Lakht-i-Hausain reportedly revealed in the custody of Federal Investigation Agency (FIA).

Sources told Dawn on Sunday that Zarco had become the second foreign exchange company after Khanani and Kalia that indulged in illegal transactions to the tune of over Rs100 billion in hawala and hundi business.

After spending two days in the FIA custody, Hausain complained of heart problem and filed an application in the court requesting for his medical tests. Now he has been admitted to the Punjab Institute of Cardiology.

The FIA officials concerned said they would request the court to constitute a medical board for Mr Hausain's medical examination.

“We are expecting more details of the fraud from him (Hausain) once he is given back in our custody,” a source said.

He said so far some 24 individuals and 38 franchises and exchange booths had submitted applications to the FIA claiming the company owed Rs200 and Rs400 million to them, respectively.

The State Bank of Pakistan has already suspended the company's license for a month. The FIA has also seized the record and computers from company's head office in Lahore, besides arresting its IT expert Mansoor Kanwar, whose bail has reportedly been cancelled.

According to FIA, the company has 257 branches across the country.