In a surprising turn of events, the Federal Investigation Agency (FIA) has cleared former FBR Chairman Syed Muhammad Shabbar Zaidi, FBR officials, several banks, and other individuals in the ₨16 billion income tax refunds case—within just 24 hours. The sudden closure came as senior government figures, including Finance Minister Muhammad Aurangzeb, risked potential legal consequences if the investigation proceeded.
Case Background
The FIA’s Anti-Corruption & Crime Circle Karachi had registered a case accusing Shabbar Zaidi of approving unlawful tax refunds worth ₨16 billion to his former client companies and major banks during his tenure as FBR Chairman.
The biggest chunk of the alleged illegal refunds—₨10 billion—was attributed to Habib Bank Limited (HBL), where Finance Minister Muhammad Aurangzeb previously served.
Another major entity, MCB Bank, owned by prominent businessman Mian Mansha, allegedly received ₨1.10 billion in improper refunds.
Other Entities Named in the Case
- Engro Corporation – ₨2 billion
- Standard Chartered Bank – ₨1.5 billion
- Maple Leaf Cement – ₨700 million
- DG Khan Cement – ₨500 million
All were accused of benefiting from coordinated misconduct and fraudulent refunds.
Sudden Closure of the Case
Despite earlier allegations of malafide intent, personal gain, and criminal collusion, the FIA abruptly moved to have the case classified as C-Class, meaning no criminal element was found.
Crucially:
- The FIA reportedly did not conduct detailed questioning or further investigation before requesting the case closure.
- The move came after concerns that the inquiry could bring legal pressure on key figures, including:
- Finance Minister Muhammad Aurangzeb
- MCB owner Mian Mansha, who is closely linked with the ruling party
- Other influential business and banking personalities
Sources claim that although the case was initially registered on the instruction of top authorities, the potentially serious consequences led to direct orders from the highest levels to close it.
Court Proceedings
The FIA submitted its C-Class report to the Special Court Central-I, presided over by Judge Dr. Shabana Waheed.
The court accepted the report and ordered that all accused be discharged, sending the file to the record.
The investigating officer argued that:
- The case was based on misunderstanding
- No evidence of a criminal offence was found
- The names of all nominated individuals should be removed
Internal FIA Communications
Before closing the case, a formal letter—approved by FIA Karachi Zone Director Muntaizar Mehndi—was issued to the Anti-Corruption Circle recommending cancellation of the case and removal of all accused parties from the FIR.
