The Federal Investigation Agency’s (FIA) Corporate Crime Circle has arrested a Karachi-based businessman, Syed Zeeshan Afzal Bilgrami, for allegedly defrauding a Chinese company of Rs115 million. Bilgrami, the owner of Danzo Traders, was apprehended from his office on I.I. Chundrigar Road. The high-profile case has raised concerns about fraudulent practices in international trade and their detrimental impact on Pakistan’s reputation.
Fraudulent Deal
The case began with a complaint filed by Corin Chen, a representative of Jiangsu Provincial Foreign Trade Corporation, a Chinese importing firm. According to the complaint, Bilgrami signed an agreement on January 17, 2024, to export 1,500 metric tonnes of chrome ore, a mineral essential for producing ferrochrome, a key component in stainless steel manufacturing.
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In February 2024, Danzo Traders shipped 60 containers from Karachi Port to Xingang Port, China. However, upon inspection, the shipment was found to contain soil, gravel, and stones instead of the promised chrome ore. The fraudulent delivery prompted the Chinese firm to file an official complaint with the FIA, leading to an inquiry.
Banking Fraud and Forged Documents
Investigations revealed that Bilgrami had committed multiple fraudulent acts. Before the shipment reached China, he executed a Letter of Credit (LC) held in his company’s bank account. To do so, he submitted forged inspection certificates, along with fake quality and weight documents, to deceive both the bank and the importer.
The FIA has charged Bilgrami under sections 406 (criminal breach of trust), 420 (cheating), 468 (forgery for purpose of cheating), and 471 (using forged documents as genuine) of the Pakistan Penal Code. These charges encompass both export fraud and banking deception.
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The case has sparked outrage, highlighting the broader implications of fraudulent practices. Officials expressed concern about the damage to Pakistan’s credibility in global trade, emphasizing that such incidents could harm relationships with international partners and deter future investments. Bilgrami remains in custody as investigations continue. Authorities are working to uncover the full scope of the fraud and identify any accomplices involved in the scam.