MODARABA COMPANY SCAM ISLAMABAD: The recently unearthed unique Modaraba scam, involving a group of religious scholars, is feared to have deprived thousands of citizens of billions. Already more than 850 people have approached the National Accountability Bureau with their claims amounting to over Rs500 million in case of only one fraudulent company of Muftis doing business in the name of Modaraba and Musharaka. But the sources in NAB fear that it is a multi-billion scam amid indications that the money has also been transferred outside Pakistan. There are reports of different groups of Muftis working for different companies. However, the bureau has so far probed only one group because of the non-availability of NAB chairman. The sources said that the victims who had made huge investments, in millions, are reluctant to file claims before the NAB fearing they might also be probed about the source of their millions that they had invested in the alleged fraudulent Modaraba scheme for a monthly profit of six to eight percent. In the name of interest-free Islamic investment, a group of Muftis (religious scholars) have allegedly exploited a large number of citizens, who were lured to invest their money in the Muftis’ Modaraba scheme for six to eight per cent monthly profit. The innocent people trusted these Muftis and their claims and thus handed over their savings to them to earn nice interest-free profits. It is said that women sold their jewelry and men disposed of their properties and not-so-good businesses to invest in the Modaraba Company. The NAB sources said that the bureau received a complaint against Mufti Ehsan Ul Haq and his group. It was said that this group of Muftis was doing the business of receiving funds from public on profit & loss basis. This group received funds from the public in the name of Modaraba having no authority/approval, registration as a Modaraba company from the SECP. This complaint led to the full-fledged investigation in this scam by the NAB, which also through public ad not only warned the people but also asked them to submit their claims with the NAB. The NAB found out that the group had deceived the public and concealed the fact of non-registration of a Modaraba company from SECP, received the heavy volume of amounts and issued receipts of these amounts. They issued receipts in the name of M/s Fayazi Gujranwala Industries Pvt. Ltd., which is registered as a private limited company having no mandate to act as a Modaraba company. The sources said that some other companies were also operating. Following the NAB advertisement a total of 856 persons approached the NAB with their claims till middle of last month. These claims are being verified from the available record produced by accused - Mufti Ehsanul Haq - who was arrested by the NAB authorities. The NAB sources said that the accused, admitting his guilt, came forward and applied for Voluntary Return (VR) under section 25 (a) of NAO 1999. On June 18 the NAB approved VR of accused for an amount of Rs552 million of which the accused has submitted Rs446 million in the form of 20 pay orders. He will deposit the remaining amount on in one month whereas NAB has kept as guarantee the original documents of six of his immoveable properties. Mufti Muhammad Ehsan Ul Haq, after approval of VR, has been released. Besides Mufti Ehsan’s group, two more companies of Muftis are reported to be involved in similar illegal Modaraba business in different parts of the country. One of the victims told The News that he had invested around Rs20 million in the company of one Mufti Usama after having seen the Muftis coming up with a riba-free business. He said he was told that the investment is made in huge property business in foreign countries besides other schemes within Pakistan. He was also told that the investments are also being made in the airlines business. The victim said that the name of reputed scholars and some revered religious groups were also used but later no such connection was found to be correct. NAB has also received a number of complaints against Elixir Group and Albaraka Marketing. “We will probe them once the new chairman NAB arrives,” a source said.
Posted on: Tue, 13 Aug 2013 14:46:41 +0000