The Federal Investigation Agency (FIA) has arrested a prominent Faisalabad-based industrialist and two former chief executives of the Faisalabad Electric Supply Company (FESCO) in connection with an alleged Rs11.96 billion power fraud and corruption case.
The suspects, including industrialist Mian Idris, were arrested at Allama Iqbal International Airport, Lahore, while reportedly preparing to travel to the United States. Following their detention, they were handed over to the FIA’s Faisalabad investigation team for further legal proceedings.
According to officials, the FIA registered the case on July 18 and placed the suspects’ names on the Exit Control List (ECL) to prevent them from leaving the country.
Investigators allege that the accused caused losses of approximately Rs11.96 billion to the national exchequer through irregularities involving electricity generation, supply agreements, and regulatory approvals. The FIA claims private companies received unlawful financial benefits through violations of electricity regulations and misuse of official authority.
The First Information Report (FIR) names 13 individuals, including six former FESCO chief executives, an additional director general of the National Electric Power Regulatory Authority (NEPRA), company directors, and several senior officials. The case was registered after an FIA anti-corruption inquiry reportedly uncovered documentary evidence supporting the allegations.
According to the investigation, Sitara Energy Limited was granted a power generation licence under specific regulatory conditions. However, the FIA alleges the company violated those conditions by selling electricity to FESCO without fully complying with NEPRA approvals, tariff regulations, and the terms of the Power Purchase Agreement (PPA).
Investigators further claim that certain public officials abused their authority by facilitating financial benefits for private companies while failing to exercise proper regulatory oversight, allowing the alleged irregularities to continue for several years.
The accused include directors associated with Sitara Group of Industries, Sitara Energy Limited, and Sitara Chemical Industries Limited, alongside several former FESCO executives and regulatory officials.
The FIA has registered the case under various provisions of the Prevention of Corruption Act and the Pakistan Penal Code, including allegations of fraud, forgery, criminal breach of trust, abuse of authority, and the use of forged documents.
According to investigators, between 2007 and 2015, companies linked to the case allegedly sold electricity to FESCO at rates exceeding approved tariffs while purchasing electricity for their industrial operations at substantially lower rates, resulting in significant financial losses to the government.
The FIA says investigations are ongoing and further arrests or legal proceedings may follow as additional evidence is examined.
