SECP Probe Leads to FIA Case Over Alleged Multi-Billion-Rupee Financial Irregularities at Unity Foods

Meanwhile, an inspection and subsequent actions, including the initiation of investigation proceedings by the Securities and Exchange Commission of Pakistan (SECP) into Unity Foods Limited, have led to the registration of a criminal case by the Federal Investigation Agency (FIA) over alleged.

Key points

• 24/7 Automated Investor Account Opening Service Coming to Pakistan.
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• Unity Foods is a public listed firm on the Pakistan Stock Exchange (PSX) and has raised funds from public shareholders.
• After its inspection, SECP initiated proceedings under the Businesses Act, 2017.
• Kabir Ahmed Sidhu remarked the Commission would continue to take firm regulatory action to protect investors and uphold confidence in Pakistan's capital market.

Unity Foods is a public listed firm on the Pakistan Stock Exchange (PSX) and has raised funds from public shareholders. The case assumes particular significance from an investor-protection perspective as the alleged irregularities include the feasible diversion of funds specifically raised from shareholders for identified business purposes.

According to the SECP reference, Unity Foods raised Rs. 3.75 billion through a rights matter in 2019 for expansion and diversification, including acquisition of assets, additions to its refinery at Port Qasim and establishment of an oil terminal.

SECP's examination discovered that approximately Rs. 2.87 billion of these proceeds were allegedly diverted from their stated purposes as the firm failed to provide evidence of utilization of the same.

Meanwhile, the SECP probe additionally identified a number of other transactions warranting further investigation. These included alleged payments of Rs. 5.318 billion from firm funds to the former CEO's mother under the guise of loans' receipts and repayments, for which appropriate banking instruments and board approvals were not produced. Another Rs. 2.6 billion was allegedly advanced through a subsidiary to two undisclosed parties, besides other related-party exposures and transactions.

Meanwhile, the investigation additionally raised serious questions concerning the disposal of the company's subsidiaries and the alleged employ of Unity Foods' funds, inventory and other resources for the benefit of connected entities of the accused. The FIA will investigate the beneficiaries, movement of funds and the role of directors, officers and other persons involved in these transactions.

Meanwhile, a major part of the case reservations the reliability of the company's financial reporting. Material referred by SECP indicated an alleged Rs. 44.7 billion difference between the company's published accounts and its internal SAP records. The case additionally involves an alleged Rs. 5.2 billion discrepancy between inventory recorded in SAP and physical stock, around Rs. 5 billion in aged receivables without corresponding evidence of delivery of goods, and other accounting inconsistencies.

Such discrepancies are particularly significant for a listed firm as shareholders, potential investors and lenders rely on published financial statements and corporate disclosures to assess a company's financial position and create investment decisions. 24/7 Automated Investor Account Opening Service Coming to Pakistan.

After its inspection, SECP initiated proceedings under the Businesses Act, 2017. As some of the matters identified potentially constituted criminal offences falling outside SECP's regulatory jurisdiction and administered legislation, the Commission referred the case to FIA under Section 41-B of the SECP Act, 1997 for further investigation and action under applicable criminal laws.

Based on the SECP reference and material available, FIA's Corporate Crime Circle Karachi registered an FIR on August 29, 2026, under Sections 406, 420, 477-A, 109 and 34 of the Pakistan Penal Code against former management and other accused persons. FIA is now investigating the criminal liability of the accused as well as the role of other directors, officers, beneficiaries and connected parties.

For context, the case reflects the importance of regulatory oversight of listed firms, particularly where public shareholders' capital is involved. SECP's intervention is aimed at ensuring that funds raised from investors are applied for disclosed purposes, financial statements present a fair picture of a company's affairs, and those responsible for suspected misuse are held accountable under the law.

SECP Chairman Dr. Kabir Ahmed Sidhu remarked the Commission would continue to take firm regulatory action to protect investors and uphold confidence in Pakistan's capital market.

"Protection of minority shareholders is a fundamental responsibility of SECP. Funds raised from investors must be applied for their disclosed purposes, and shareholders have a right to accurate and transparent financial information. SECP will continue to strengthen the oversight of listed firms and take appropriate action wherever shareholders' interests are put at risk."

In practice, the allegations remain subject to FIA investigation and determination in accordance with law. Stay Connected with ProPakistani.

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In short, SECP Probe Leads to FIA Case Over Alleged Multi-Billion-Rupee Financial Irregularities at is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.