Unity Foods case: Officials denied bail, proceedings adjourned

Four current and former officials of Unity Foods remain in custody after the court refused them bail in a corporate crime case brought by the Federal Investigation Agency (FIA). According to a statement from the Securities and Exchange Commission (SECP) issued on Thursday, the hearing has been put off until September 12. Applicants for release are Jalees Edhi, formerly the finance chief, director Safdar Sajjad, ex-director Abdul Majeed Ghaziani, and Amir Shehzad, once a director and later chief executive of subsidiary Sunridge Foods.

The case stems from an FIR lodged on August 29 by the FIA's Corporate Crime Circle in Karachi, naming ex-chief executive Farrukh Amin alongside other officials, both serving and past. The SECP reference that prompted it flagged suspected breach of trust, falsified accounts, misuse of company and shareholder money, and possible money laundering. Amin was freed after a Karachi magistrate rejected the FIA's plea for physical custody, citing a Sindh High Court protective order, and must furnish a bond and cooperate with the probe.

The investigation cites a gap of about Rs44.7 billion between the company's reported financials and its in-house SAP ledgers, along with a Rs5.2 billion inventory shortfall and about Rs2.87 billion diverted from a Rs3.75 billion rights offering. Wilmar International, which owns around 42%, has booked a $150 million provision on its investment.