ISLAMABAD: The National Assembly on Wednesday passed ‘Benami’ Transactions (Prohibition) Act 2017 for prohibition of holding property in ‘benami’ and restrict right to recover or transfer property and provide a mechanism and procedure for the confiscation of ‘benami’ property.
Under the law, the ‘benami’ property means a transaction or arrangement where a property is transferred to, or held by, and the consideration of such property has been provided or, paid by another person; or a property held for the immediate future benefit, direct or indirect, of the person who has provided the consideration; a transaction or arrangement in respect of a property carried out or made in a fictitious name; a transaction or arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership; and a transaction or arrangement in respect of a property where the person providing the consideration is not traceable or fictitious.
The law provides that no person shall enter into any ‘benami’ transaction and anybody violating this provision shall be punishable under the law and any property, which is subject matter of ‘benami’ transactions, shall be liable to be confiscated by the federal government.
Moreover, no person, being ‘benamidar’ shall transfer the ‘benami’ property held by him to the beneficial owner or any other person acting on his behalf and where any property is retransferred in contravention of the provisions of this law, the transaction of such property shall be deemed to be null and void.
This bill, once it becomes an Act, shall deal with the problems of tax evasion and black money especially in the real estate sector, and to target transactions that are carried out in other people’s name. It is also meant for putting an end to ‘benami’ transactions, and to empower the government to recover such property, defining ‘benami’ transactions, the legislature intends to prohibit all persons from entering into such transactions.
The bill further seeks to ensure that if any person enters into a benami transaction to evade tax or avoid payment to creditors, the ultimate beneficial owner and persons who abet or induce any person to undertake such transaction, suffer rigorous punishment.
The House also passed the Companies Appointment of Legal Advisors (Amendment) Act 2016 to enable Securities and Exchange Commission of Pakistan (SECP) to take timely cognizance of violation of this act.
The bill will also enable SECP to take cognizance of violation of rules and regulations made there under and impose penalties besides giving reprieve to small companies from the mandatory requirement of appointing legal advisors.
Meanwhile, the National Assembly also passed the National Commission on the Rights of the Child Bill, 2016 aimed at setting up an independent commission to monitor, protect and promote the rights of the child.
Minister for Human Rights, Kamran Michael piloted the bill to provide for constitution of a National Commission on the Rights of Child [The National Commission on the Rights of the Child Bill, 2016].
However, the bill was strongly opposed by all opposition parties including PPP, PTI, ANP, MQM and JI.
Those who opposed the bill included Yousaf Talpur, Shazia Marri, Dr Shireen Mazari, Ghulam Ahmad Bilour, Sheikh Salahuddin, Jamshid Dasti, Dr Fehmida Mirza, Abdul Wasim, S A Iqbal and Sahibzada Tariqullah.
They were of the views that age limit should not be reduced from 16 year. They were of the views that they have genuine reservation over the bill and it should be sent to the committee for review.
