A Parallel System. A Legal Challenge. A Supreme Court Rejection
What began as a routine inquiry by the FIA, following a complaint by the State Bank of Pakistan, led to the unearthing of what was alleged to be an unauthorized digital platform linked to individuals associated with Khanani & Kalia International. The platform was reportedly used to carry out foreign currency transactions beyond the regulatory scope of the Central Bank.
The legal challenge quickly evolved into a broader question. It was not just about alleged violations of Foreign Exchange Laws. It raised complex issues of jurisdiction, regulatory overlap, misuse of digital infrastructure, and whether such cases could be brought under the Offences in Respect of Banks (Special Courts) Ordinance of 1984.
Our Managing Partner, Shahab Sarki, had the privilege of representing the state to oppose the bail before the High Court of Sindh. With support from a robust evidentiary record including details of unlicensed platforms, benami accounts, and irregular financial flows, we successfully argued that the case prima facie warranted continued investigation and custodial scrutiny.
This case serves as a cornerstone of why financial regulation in the digital era is critical to economic stability. Legal oversight is not only about compliance — it is a matter of national interest and if left unattended; it leads to financial murder of the economy.
