Karachi exporter arrested for sending dirt instead of goods in fraud scheme

KARACHI: The Federal Investigation Agency (FIA) has arrested a trader from Karachi for scamming a Chinese company of Rs. 115 million by shipping soil and gravel instead of chrome ore.

As per the details, accused Syed Zeeshan Afzal Bilgrami, owner of Danzo Traders, was arrested from his office on I.I. Chandrigarh Road following a complaint filed by a Chinese importing firm, Jiangsu Provincial Foreign Trade Corporation. The company’s representative, Corinne Chen, complained about the matter.

Investigation revealed that Bilgrami had signed a contract to export 1,500 metric tonnes of chrome ore to the Chinese company on January 17, 2024. However, in February, Danzo Traders sent a consignment of 60 containers from Karachi Port to Zhengzhou Port in China. Instead of chrome ore, the containers were found to be filled with soil, gravel and stones.

Chrome ore is a valuable mineral used to produce ferrochrome, a key ingredient in the production of stainless steel.

Before the fraudulent shipment reached its destination, Bilgrami allegedly executed a letter of credit (LC) held in his company’s bank account using fake inspection certificates and fake quality and weight documents.

The FIA ​​has charged Bilgrami with export and banking fraud, accusing him of defrauding the Chinese company and tarnishing Pakistan’s reputation in international trade. Authorities are continuing their investigation into the case.