KARACHI: A local court in Karachi issued non-bailable arrest warrants for Sarfaraz Merchant, a UK-based Pakistani businessman, in a case of alleged fraud.

The warrants came two days after he recorded his statement with Federal Investigation Agency (FIA) regarding funding of Indian spy agency to Muttahida Qaumi Movement.

According to our correspondent, Judicial Magistrate South issued the warrants today when the court heard a petition of a man Zafar Faridi.

The complainant claimed that Merchant had snatched a car from him and extorted Rs. 2.5 million after threatening to file a fake case.

Reports said police have declared Merchant as ‘absconder’ in the challan. A case has been registered against him in Darakhshan police station under sections 420 and 506.

After hearing the case, the magistrate issued non-bailable warrants for arrest and production of Sarfaraz Merchant in the court on April 21.

The UK-based businessmen has provided documents to FIA against MQM leader Altaf Hussain over alleged money laundering and alleged connection with RAW.

He has also recorded his statement to an FIA committee probing allegations against the MQM head.