FIA registers 10 cases against sugar mafia after unearthing gambling, money laundering network

LAHORE: The Federal Investigation Agency (FIA) has exposed the sugar mafia's involvement in monetary fraud, speculative trade and money laundering after obtaining evidence of persistent increase in sugar prices through creating artificial shortage of the commodity.

The sugar mafia earned Rs110 billion in a year by increasing the sugar prices from Rs70 to Rs90 via ''satta'' (price fixing through collusion) and stashed the illegally gotten amount in fake and secret accounts, the FIA said.

Almost all the major sugar producing groups — some of which belong to major political parties — including Sharif Group, Tareen Group, Alliance Group, Almoiz Thal Group and Hamza Group, were found involved in the gambling, the agency added.

FIA Director Lahore Dr Muhammad Rizwan while talking to the media on Thursday about the operations against the sugar mafia said that solid evidence has come to light in the operations via data retrieved from 32 digital devices belonging to the sugar mafia.

He said owing to the sheer volume of the data gathered, "thousands of books" can be printed.

Rizwan said that 10 cases have been registered against the sugar mafia while 40 people have been identified who "were all in touch with each other".

The FIA has decided to investigate and scrutinise the accounts of prominent members of sugar gambling mafia, and then arrest them after registration of cases under Anti-Money Laundering Act, said the director.

Rizwan said of the "satta" mafia groups, 10 are from Lahore, while others are located in Multan, Hasilpur, Khanewal and Bahawalpur.

It was also revealed that the sugar mafia conspired to further increase sugar prices through gambling in the month of Ramazan.