Prominent Builder Muhammad Hanif Jewani Accused of Money Laundering in Rs. 3 Billion Scandal

The Customs Intelligence in Karachi has initiated a case against the well-known builder and developer, Muhammad Hanif Jewani, and his son Ahmed Hanif Jewani, who were involved in an extensive money laundering scheme amounting to over Rs. 3 billion. This intricate operation included several stages, such as placement, mingling, and layering of illegal funds and their integration into the economy. The accused used their companies, including HSJ Construction and HSJ Builders and Developers, to carry out this operation under the guise of the “HSJ Icon” residential project. Notably, this project was not registered with the tax authorities.

The initial investigation revealed that the accused persons had unlawfully removed a substantial quantity of iron and steel waste and scrap, resulting in a massive tax evasion of Rs. 716 million. Despite efforts to recover the funds, the bank accounts of one of their companies, HSJ Metals Pvt. Ltd., had no available funds.

Furthermore, the accused manufactured steel bars using non-duty/tax paid waste scrap and Silico Manganese, which were then sold in the market and used in the construction of HSJ Icon. They also diverted the proceeds from these sales to fund the construction project, essentially laundering the money.

The complex interplay between these two entities, one generating illegal funds and the other integrating them into legitimate projects, falls under the purview of the Anti-Money Laundering Act. Consequently, the total money laundering amount is estimated at Rs. 3.5 billion, comprising tax evasion, surcharges, and goods value. The case underscores the need for vigilant enforcement of anti-money laundering laws and tax regulations in the real estate and construction sector.

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