KARACHI: Axact CEO Shoaib Shaikh reached the district court south for the hearing of a money laundering case on Tuesday.

Shaikh was arrested on Monday evening after the Sindh High Court (SHC) rejected his protective bail application, which was submitted after the court approved the Federal Investigation Agency’s (FIA) appeal against the acquittal of those accused in the Axact money laundering case.

The Axact CEO’s legal counsel had requested the court to grant a three-day protective bail.

The case

The Axact scandal surfaced in May 2015, when The New York Times published a report had claimed the company sold fake diplomas and degrees online through hundreds of fictitious schools, making “tens of millions of dollars annually”.

The FIA had then filed a plea against the acquittal of Shaikh in 2016 in a money laundering case, arguing that he was exonerated from the charges by the trial court despite strong evidence that proved his involvement in money laundering.