Every state of the world has passed the law to curb the transactions to conceal the actual owner.The State of Pakistan passed the law to curb this menace of corruption.There is a overview of law that is similar to laws of other States as well as countries for this purpose.I will begin from the statement and purpose of the law.The law is called the Benami Transaction (Prohibition)Act 2017.
Statement and purpose of Benami Transaction (Prohibition)Act 2017
Benami Transaction (Prohibition)Act 2017 has been passed to provide for prohibition of holding property in benami and restrict right to recover transfer property held benami and provide mechanism and procedure for confiscation of property held benami and for matters contacted there with.
Definition of Benami Property:
Benami property means any property which is subject matter of Benami transaction and also includes the proceeds from such property.
Definition of Benami transaction:
A benami transaction means—–
- transaction or arrangement –where a property is transferred to or is held by a person and consideration for such property has been provided or paid by an other person.
- the property is held for immediate or future benefit,direct or indirect,of a person who has been provided the consideration.
- a transaction or arrangement in respect of property carried out or made in a fictitious name.
- a transaction or arrangement in respect of property where the owner of property is not aware of or denies knowledge of such owner ship.
- a transaction or arrangement in respect of a property where the person providing the consideration is not trace able or is a fictitious.
Definition of Benamidar :
- a person or a fictitious person as case may be, in whose name the benami property is transferred or held and includes a person who lends his name.
Definition of Beneficial Owner:
Beneficial Owner means a person whether his identity is known or not or for whose benefit the benami property is held by Benamidar.
Definition of fair market value:
Fair market value means the price that the property would ordinarily fetch on sale in the open market on the date of transaction.
Offence of Benami Transaction and punshiment:
No person shall enter into any benami transaction.
Who ever enters into any benami transaction or held any benami property shall be punishable to imprisonment not less than one year and not more than seven years and 25 percent of the value of Benami property.
Any property which is subject matter of Benami transaction shall liable to confiscated by Federal Government.
Prohibition transfer of property by Benamidar:
No person being Benamidar shall transfer the benami property held by him to beneficial owner or any other person acting on his behalf.
Authorities of Benami Transaction:
a) the initiating officer,
b) the approving authority
c) the administrative
d) the adjudicating authority
Adjudicating authority
Federal Government shall appoint one or more adjudicating Authorities to exercise jurisdiction ,powers, and authority carried by benami transaction Act 2017.
Offenses by Companies :
Where a person committing contravention of any provision of Benami Act 2017 or any of rule direction or order made there under is a company every person who at the time the contravention was committed ,was in charge of ,and was responsible to the company,for conduct of business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to proceeded against and punished accordingly.
Reward to whistleblower
The Board may sanction reward to the whistleblower in case of credible information leading to detection of Benami property or Benami transaction. The reward will be Rs.2,20,000+4 percent over Rs.50,00,000.
Procedure of proceedings:
Initiating officer after inquiry will file reference before adjudicating authority. The adjudicating will pass best judgement. The aggrieved party will appeal to the Federal Tribunal. Against the judgement of tribunal the tribunal, aggrieved party will move appeal before High Court.
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