ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue has unanimously recommended the Benami Transaction (Prohibition) Bill, 2016 to the Lower House of the Parliament for approval along with a few amendments.
Under the Benami Transactions (Prohibition) Bill, 2016, it defines Benami transaction as an arrangement where property is held by a person (other than in fiduciary capacity) on behalf of another person who has paid for it; or the transaction is made for a property in a fictitious name, or the owner of the property is not aware of or denies knowledge of such ownership.
NA Finance and Revenue Committee met with Chairman Qaiser Ahmad Sheikh in the chair to confirm minutes of meeting as well as to discuss the Benami Transactions (Prohibition) Bill, 2016.
Finance Ministry officials informed the committee that the Bill prohibits all persons from entering into benami transactions. Any property held in “benami” shall be confiscated by the central government. Once property is confiscated all the rights and titles of confiscated property will rest with the federal government and no compensation will be payable.
Moreover, the committee was informed that the Bill provided, the adjudicating authority and the appellate tribunal established under the Anti-Money Laundering Act, 2010, would also be the same for the purposes of this Act. If the Initiating Officer has reason to believe that a property is held “benami“, he may issue a notice to the benamidar and call for documents and reports for inquiry.
Furthermore, it was observed by the officials that these provisions didn’t apply to any transaction entered into by an individual in the name of his spouse, brother or sister, or any lineal ascendant or descendant may not be considered “benami“. The Bill restricts the right of any person who is claiming to be the real owner to recover such property. In addition, no person shall be able to re-transfer such property to the beneficial owner.
The committee considered the “The Benami Transaction (Prohibition) Bill, 2016” clause by clause. After thread bear discussion, the Committee unanimously recommended that the Bill may be passed by the National Assembly with some amendments.
