Ice Cream fraud: Baskin Robbins Pakistan implicated in Rs. 81 million under-invoicing scandal

ISLAMABAD: A chilling financial scandal has frozen the operations of Baskin-Robbins Pakistan as the Federal Investigation Agency (FIA) uncovers a vast under-invoicing scheme that allegedly defrauded the national treasury of a staggering Rs. 81.45 million.

The investigation, detailed in a newly filed First Information Report (FIR), points to a complex web of corruption involving the ice cream giant’s authorized importer, intermediary companies, and complicit customs officials.

The FIA’s probe, triggered by Enquiry No. 389/2024, reveals that M/S AHG Flavors (Pvt) Ltd, responsible for importing Baskin-Robbins ice cream from the United States, is at the center of the alleged fraud.

The company, led by CEO Gibran Mustafa and Chairman Haris Mustafa, is accused of orchestrating a systematic under-invoicing operation between 2019 and 2021.

Investigators allege that AHG Flavors collaborated with M/S INTERLINK Corporation Lahore, owned by Abid Riaz Bhatti and Sabir Ali, to manipulate import invoices. The FIA’s analysis uncovered significant discrepancies between genuine invoices from Baskin-Robbins USA and the falsified documents submitted for customs clearance.

While the actual quantity and weight of the imported goods remained consistent, the declared values were drastically reduced, allowing the perpetrators to evade substantial customs duties and taxes.

“This was a deliberate and calculated attempt to defraud the national exchequer,” stated an FIA source familiar with the investigation. “The evidence we have gathered points to a sophisticated scheme involving multiple parties.”

The FIR names several individuals, including Imdad Ali Bozdar, Principal Appraiser at the Customs Collectorate of Customs, Karachi, was accused of facilitating the fraudulent clearance, Gibran Mustafa, CEO of AHG Flavors, Haris Mustafa, Chairman of AHG Flavors, and Sabir Ali and Abid Riaz Bhatti, owners of M/S INTERLINK Corporation.

These individuals face charges under the Pakistan Penal Code (PPC), the Prevention of Corruption Act 1947, and the Customs Act 1969.

The FIA has also indicated that the investigation is expanding to include scrutiny of other customs officials, including former Deputy Collector Customs Mohib Khan and former Collector of Customs Port Muhammad Bin Qasim Karachi, Chaudhry Javaid.

“We are determined to uncover the full extent of this corruption and bring all those responsible to justice,” stated Mohammad Tauqir, the FIA Inspector leading the investigation.

This scandal has sent shockwaves through the business community and raised serious concerns about the integrity of the customs clearance process.