In his verdict, Judicial magistrate Ghulam Murtaza Virk ordered the Federal Investigation Bureau (FIA) to drop the case against the Tareens.
The judgement read: "In view of the report submitted by the investigation officer in the case, the court ordered to cancel of the first information report (FIR)."
"According to the report, all the transactions have been done in accordance with the law of the Securities and Exchange Commission of Pakistan (SECP)," it added.
As per the report, no allegation of money laundering or dollars transfers through illegal manes was found true, the court observed.
In its report, the investigation officer confirmed that the charges against Tareen and his son were false.
In March 2021, Tareen and his son were charged with alleged fraud and money laundering.
FIA Lahore investigation team registered a case of alleged fraud of Rs3.14 billion on March 22 against them.
The FIR stated that Tareen allegedly transferred illegal shares worth billions of rupees to Farooqi Pulp Mills Limited (FPML), which is owned by his son and close relatives.
It said the transfers, especially after 2011-12, were "patently fraudulent investments which ultimately translated into personal gains" for Jahangir's family. Some Rs3 billion were invested and laundered through the same factory.
The FIR outlines when and how FPML was made back in 1991.
It includes sections 406, 420 and 109 of the Pakistan Penal Code with Section 3/4 of the Anti-Money Laundering Act, 2010. Rana M Shawaz will be the investigation officer.
Jahangir, however, said that the allegations by FIA were "baseless". He said a private audit firm had already validated the accounts of his companies. He added that all the shares were transferred in accordance with the law.
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