The Federal Investigation Agency (FIA) has registered a corruption case against four former chief executive officers of the Faisalabad Electric Supply Company (Fesco), along with the chief executive and five directors of two industrial companies, over an alleged Rs12 billion electricity fraud.

According to the FIA, the accused allegedly colluded between 2007 and 2015 to manipulate electricity purchase and sale arrangements, enabling the companies to secure unlawful financial benefits while causing substantial losses to the national exchequer.

The agency has arrested two former Fesco CEOs, Khurshid Alam and Ahmad Saeed Khan, while one company director was detained at Lahore Airport. A local court has granted the FIA a five-day physical remand of the arrested officials for further investigation. The remaining accused have been placed on the Exit Control List (ECL).

Investigators alleged that one company sold electricity to Fesco at rates exceeding those approved by the Central Power Purchasing Agency (CPPA), while both firms simultaneously received subsidised electricity from Fesco as bulk consumers. One of the companies is also accused of obtaining subsidised natural gas from Sui Northern Gas Pipelines Limited (SNGPL) by presenting itself as a captive power plant, while allegedly submitting misleading documents to the National Electric Power Regulatory Authority (Nepra).

The case has been registered under the Prevention of Corruption Act and multiple provisions of the Pakistan Penal Code, with the FIA continuing its investigation into the alleged financial irregularities.