FIA Arrests Two MDA Men Over Fake Bank Challans
The Federal Investigation Agency (FIA) has arrested two employees of the Malir Development Authority (MDA) in Karachi over an alleged network of fake bank challans, recovering Rs20 million in cash and stamps bearing the names of different banks.
The FIA’s Commercial Banking Circle carried out the raid in Al-Hilal Society on University Road on Wednesday. It arrested Waqas, the authority’s director of land management, and Yameen, a dispatch rider.
An FIA spokesperson said the recovered cash was believed to have come from the alleged illegal activity. A case has been registered, and further investigation is under way.
How the alleged fake challan network worked
A bank challan is a printed slip that records a payment made to a bank, often against a government fee or a land-related charge. The slip, stamped by the bank, serves as proof that the money was paid.
According to the FIA, the suspects used fake bank stamps to mark challans as paid, but did not deposit the matching cash. The money that should have gone to the bank or the authority was instead kept as proceeds of the fraud.
The agency said the two men disclosed this method during questioning. It is now checking whether other MDA officials or bank employees helped the network, and how long it had been running.
MDA fake bank challans add to a list of probes
The fresh arrests add to a long list of inquiries around the authority. The MDA already faces probes into alleged irregularities in land auctions and the transfer of government land to Bahria Town.
In November 2023, the Anti-Corruption Establishment Sindh registered two cases against serving and retired officers and private individuals. The charges covered corruption, misuse of power and fraud in the allotment of plots through balloting. Those named included the authority’s former director general, serving directors and private contractors.
Then, in February 2025, the National Accountability Bureau filed a reference against former senior government functionaries and officials. It alleged that government land had been converted, exchanged and transferred to Bahria Town. The watchdog claimed the executive hierarchy, the revenue board and the MDA had conspired to hand valuable public property to an individual for personal gain.
Some of those cases are still in progress. The new arrests have raised fresh questions about the authority’s internal checks and the way payments against government transactions are verified.
What happens next
The FIA said it is working to identify more suspects in the network. Its spokesman said the agency is ascertaining the possible involvement of other MDA officials and employees of various banks.
For Karachi residents, the case matters because the MDA handles land allotment and development in Malir, one of the city’s largest districts. Fake challans strike at the record of who paid for what, and a weak paper trail can leave plot buyers and the public purse exposed.
Karachi recorded more dengue cases than the rest of Sindh combined this month, showing how the city’s public systems are under strain. Sindh is also opening its mineral sector to investors, while a faulty vehicle in President Zardari’s motorcade prompted a Sindh police inquiry. Chief Minister Murad Ali Shah has opposed new provinces in Sindh.
Frequently asked questions
Who was arrested in the MDA fake challan case?
The FIA arrested Waqas, director of land management at the Malir Development Authority, and Yameen, a dispatch rider. Both were held during a raid in Al-Hilal Society, Karachi.
How much cash did the FIA recover?
The agency recovered Rs20 million in cash, along with stamps bearing the names of different banks.
What is a fake bank challan?
A bank challan is a slip that proves a payment was made to a bank. A fake challan uses a forged bank stamp to show payment where no money was deposited.
What earlier cases does the MDA face?
In November 2023, the Anti-Corruption Establishment Sindh registered two cases over plot allotments. In February 2025, NAB filed a reference over the transfer of government land to Bahria Town.
Is the investigation still open?
Yes. The FIA has registered a case and says it is checking whether other MDA officials or bank employees were involved.
