ISLAMABAD - A local court Wednesday remanded former chairman Employees Old-Age Benefit Institution (EOBI) Zafar Gondal into physical custody of Federal Investigation Agency (FIA) for three days for allegedly causing a loss of Rs42 billion to national exchequer.

Senior Civil Judge Abdul Ghafoor Kakar handed over the accused to FIA for three days physical remand and directed the investigation agency to produce him before the court on September 27.

The FIA arrested Zafar Iqbal Gondal from the Supreme Court premises on Tuesday after the apex court rejected his bail application.

The former EOBI chairman had filed an application for a protective bail before a three-member bench headed by Justice Saqib Nisar, praying the FIA was harassing him and an order should be passed not to arrest him. There are six cases registered against Zafar Gondal, the brother of PPP leader Nazar Gondal, in Islamabad Police Stations, seven in Lahore and two in Karachi. He had been obtaining bails from different courts.

The accused had allegedly caused a loss of Rs42 billion to the exchequer by investing huge amounts in private sector projects without approval of the Board of Trustees (BoT). The projects included purchase of plots in DHA, purchase of a plaza in F-7 Markaz Islamabad, two 4300cc Parados for the chairman, two controversial plots in Sukkur, development of cricket ground in Islamabad, purchase of plots from CDA, 40 kanal lands in Lahore, purchase of four floors of a hotel in Lahore, construction of a 7-star hotel in Lahore, construction of M-9 Motorway and purchase of 20 kanal land near Karachi airport on exorbitant prices.

On Wednesday, the FIA officials presented Zafar Gondal the main accused of the corruption case before the court and sought his ten days physical custody for recovery of plundered money and to get information of other accused involved in the case.

FIA Prosecutor Aamir Raza appeared before the court and informed the court that the former chairman EOBI obtained Rs61.6 million as commission while purchasing Crown plaza and caused huge loss to national exchequer.

Therefore, he requested the court to grant 10 days physical remand of the accused for further investigation into this matter.

The counsel representing Zafar Gondal opposed the physical remand and maintained before the court that his client fully cooperated in the investigations and he was arrested with mala fide intentions.

He said that some 15 cases were registered against the former chairman while the FIA was seeking his physical remand in only four cases.

At this juncture, the FIA prosecutor informed the court that they were seeking physical custody of the accused in four cases, including obtaining of commission in purchase of Crown plaza, purchase of vehicle for personal use from national exchequer and two cases were related to purchase of land in Chakwal and Kalarkahar.

After hearing the arguments of both the sides, the court granted FIA three days physical remand of the accused and adjourned the hearing for further proceedings till September 27.