One of Pakistan’s biggest film importers, distributors, and exhibitors, Mandviwalla Entertainment Pvt. Ltd., found itself in trouble on Friday when the Federal Investigation Agency (FIA) raided its office.

As per reports, FIA conducted the raid at the company’s office located in a mall in Karachi on the charges of “hawala hundi,” and arrested two of its employees. For those who are unaware, Hawala Hundi is an illegal mode of transferring money and is recognised by the state authorities for facilitation of money laundering, avoidance of taxation, and the anonymous move of wealth.

A Case of 150 Million Rupees

In its raid, FIA seized some important documents of the company, particularly the ones pertaining records of import of film and cinema equipment. The investigation agency believes that the bigwigs at Mandviwalla Entertainment (ME), namely Nadeem Mandviwalla, and his son, Adil Mandviwalla, showed imported items, including cinema equipment, at a lower price than the real amount.

It is also believed that this practice of “under-invoicing” was done to avoid import duty and to launder the money. The difference between the real and displayed amount of money was sent outside the country via the illegal process of hawala hundi.

The development came when FIA in its crackdown against money laundering outfits, arrested notable Hundi agents. One of these agents during the investigations informed FIA that Mandviwalla Entertainment had allegedly transferred Rs. 150 million abroad through illegal means.

According to Mandviwalla Entertainment’s spokesperson, a raid did happen at their office which resulted in one of the employees being taken for investigation by the authorities and later released. The spokesperson went on to state that the officials at ME were fully cooperating with authorities.

Entertainment and Money Laundering: An Old Nexus

It is not the first time a major showbiz entity has been linked with money laundering in Pakistan. Earlier, supermodel Ayyan Ali, made headlines when she was allegedly caught at Karachi airport carrying millions of dollars in her luggage on her way to Dubai.

The case is still pretty much in the courts and the recent proceedings against Omni Group, also have certain links to it. The case gained so much attention locally that the Fahad Mustafa starrer Actor in Law, even had an indirectly direct reference to it.

Mandiwala entertainment has been active in Pakistan film industry for more than three decades. Apart from film distribution, the company runs numerous cinemas under its banner including Atrium Cinema in Karachi and Centaurus Cineplex in Islamabad. The now-defunct historic single-screen cinema in Karachi, Nishat, was also run by Mandviwallas.

It is the same company that brought classics like Titanic to Pakistan and was also associated with local titles like Waar, MHSA, Moor, Inteha, Salakhain, and other countless blockbusters. It is to be noted that the owner of Mandviwalla Entertainment, Nadeem Mandviwalla, is the brother of the current Deputy Chairman of Senate, Saleem Mandviwalla.

Keep reading Galaxy Lollywood for more updates regarding this story.