KARACHI - The Federal Investigation Agency has registered a money-laundering case against Muttahida Qaumi Movement founder Altaf Hussain and his party leaders.

The case registered also pinpointed illegal transfer and misuse of funds received by the party’s charity wing, Khidmat-e-Khalq Foundation (KKF). The FIR also includes the clauses of Anti-Terrorism Act while complainant, Sarfaraz Anwar Merchant, alleged the party leaders used to send money to the MQM founder from bank accounts of KKF through “Hawala” channel.

The FIR also contains similar charges against Senator Babar Ghauri, Karachi Deputy Mayor Arshad Vohra, Khawaja Sohail, Khawaja Rehan and Senator Ahmed Ali for sending money to the MQM founder through KKF bank accounts. The complainant further stated that money was transferred to 20 different companies as well as the MQM chief’s personal bank account.

In his application to the FIA, the complainant said, “I, Sarfaraz Anwar Merchant, whilst living in London, UK, was arrested by the metropolitan police after a raid at my house on December 5, 2013, on the charge of money laundering on the basis of an investigation conducted into the funds held and controlled by the MQM.”

“In England, MQM claims to have been registered, but as a corporate body and not as a political party. Where reference is made to MQM as a political party, it is a political party in Pakistan. However, subsequently, it came to my knowledge that MQM was never registered in UK.”

“The investigation thus related to MQM political party operating in Pakistan and controlled from the UK by its leader Altaf Hussain while living in London.

After I was granted bail and during the course of investigation, a document dated April 15, 205 was handed to me by the police, which gave the entire background of the case. The police also asked me to read the documents and get prepared to answers the queries of the investigation officer,” the complainant said.

It was stated in the FIR that heavy amount of money and assets were seized from the MQM premises in Karachi and the UK. It was also asserted that Altaf Hussain and other MQM members had received funds from the Indian government. Tariq Mir and Muhammad Anwar, in their interviews, had also alleged that MQM was receiving funds from the Indian government. These two persons were partners in the business with Altaf Hussain while some senior members of the MQM were running the party from the UK.

The MQM was registered with Election Commission of Pakistan as a political party of Pakistan with Altaf Hussain as its founder, so it was bound to abide by relevant laws of the land, whether in the UK or in Pakistan. The law requires the political parties to declare sources of their funds received in Pakistan or from abroad, but MQM violated the law, the FIR added.

It further stated that these undeclared bank accounts of MQM were being used for illegal activities. The money was also collected through extortion, killings, kidnapping for ransom, donations from individuals and companies, land grabbing, sale of government land to private parties (china cutting), corruption and other such unlawful activities.

“There are undeclared MQM accounts maintained in different Pakistani banks. Altaf Hussain and his accomplices in the UK and Pakistan are misusing the money received from foreign governments and collected by KKF through MNAs, senators, deputy mayor and other activists,” the complainant concluded.