Anti-Benami Adjudicating Authority becomes dysfunctional Testing

ISLAMABAD: The Anti-Benami Adjudicating Authority has become dysfunctional and cannot adjudicate/finalise references of billions filed by the Anti-Benami Zones across Pakistan.

Sources told Business Recorder that the Anti-Benami Adjudicating Authority is unable to perform its basic functions and duties due to the delay in the appointment of the members of the authority. The authority has been dysfunctional for the last 6-7 months.

Apparently, the government has not given due importance to the most important department engaged in the detection of the Benami transactions as well as arrangements to check money laundering and terrorist financing.

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The authority comprises the chairman and two members. Presently, the authority is operating without its members and hearings of references filed by the Anti-Benami Zones at Karachi, Lahore, and Islamabad cannot be conducted. Based on the already filed references, the authority cannot declare any moveable and immovable properties as Benami.

In the absence of members of the authority, all pending cases are in the pipeline, which are yet to be finalised by the adjudicating authority. Moreover, there is also a lack of support staff for the chairman and its members. Practically, Anti-Benami Adjudicating Authority has become redundant.

The Benami Transaction (Prohibition) Act, 2017 has been enforced since February 2017. In order to implement the Act, the Benami Transaction (Prohibition) Rules, 2019 were notified on March 11, 2019. The authority was notified in June 2019 under the international obligations to take action against Benami transactions.

The chairman and two members were appointed at that time. The authority’s benches were created in Islamabad, Lahore and Karachi.

The anti-Benami drive was started in July 2019 by the Prime Minister’s Office. The PM office had directed all revenue authorities of provinces to report suspicious Benami transactions to Benami authorities.

From July 1, 2019, to December 31, 2020, the authority made maximum efforts and disposed of Benami cases forwarded by the Benami Zones.

The maximum references were adjudicated from July 1, 2019, to December 31, 2020. The authority had a regular liaison with Benami Zones for smooth anti-Benami operations across the country.

On January 3, 2021, one of the members of the authority retired. On January 15, 2021, the chairman of the authority was also retired and the said authority became dysfunctional.

Later, two members from the Inland Revenue Service and the chairman also from the Inland Revenue Services were appointed in March-April 2021.

However, one of the members was transferred to the FBR Headquarters and the other member of the authority was retired.

Now, the authority is working with a chairman with no members.

During the prime time period from July 1, 2019, to December 31, 2020, the authority received 81 References from Benami Zones at Islamabad, Lahore and Karachi and finalized 59 cases u/s 24 of Benami Act 2017. Out of 59 cases in 25 cases Benami Assets have been confiscated under section 25 of the Act.

The said 59 cases involve an amount of Rs13715,173 million, the cost of acquisition. The said 81 cases included Benami properties of all kinds such as immoveable properties like plots, lands, commercial buildings, house properties etc.

With the filing of reference, the adjudicating authority is under obligation to issue a notice to the beneficial owner, Benamidar and any interested party within 30 days of receipt of reference requiring them to file their reply.

In case Benamidar/beneficial owner is involved in the commission of Benami transaction, the adjudicating authority would pass order holding the property referred in reference as Benami property and passing the order to that effect.

The law binds Adjudicating Authority to decide reference within one year from the date of filing of reference. The Adjudicating Authority, after holding the property Benami, initiates proceedings for confiscation of Benami property.