ISLAMABAD: The Federal Board of Revenue (FBR) initiated an investigation into an unidentified corporate firm under the Benami Transactions (Prohibition) Act 2017 for allegedly possessing 12,000 acres (95,603 kanals) of land and seven bank accounts under benami ownership.
According to the Benami Act, a benami property is one that is in the possession of one person (who may be ostensible owner/ benamidar) but consideration is paid by another (who may be real owner/ benami) from his sources, and this arrangement is for the benefit of the real owner.
During the investigation initiated by FBR against an Islamabad-based firm allegedly involved in dealings with at least ten high-profile politicians and public office holders, assets worth Rs15 to 20 billion are under scrutiny. These assets, held by the firm, are spread over 10 different districts across the country.
The FBR has already issued a show cause notice to the accused in the case. According to the Benami Act, the Islamabad-based firm, which also has international branches, cannot transfer the property or otherwise take advantage of it while the investigations are ongoing. Under the law, the FBR is bound to file a reference in the case within 90 days.
The report further stated that the accused in the case allegedly took advantage of a plea bargain offered by the National Accountability Bureau earlier this year, and committed to pay Rs1.9 billion against ill-gotten money of Rs13 billion. However, they paid just Rs771 million.
The revenue board is also investigating alleged money laundering in the case, as the transactions made from the seven bank accounts of the company were routed through the United Arab Emirates.
The FBR found evidence of evasion of statutory dues, avoidance of contingencies and commitments to defraud bank creditors, and tax evasion of millions of rupees in the case.
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