FBR’s Benami Adjudicating Authority becomes dysfunctional

The initative of Benami Adjudicating Authority (BAA) has become dysfunctional and unable to finalise references of billions filed by the Anti-Benami Zones across Pakistan.

What is Benami Adjudicating Authority (BAA) and Anti-Benami Initiative (ABI)

The authority was mandated to finalise the references for unexplained wealth, the possessing of multibillions of rupees, in otherwise unexplained assets, have named their assets and wealth against others, but have successfully remained safe, despite the enactment of the Benami Law in 2017, establishment of the Anti-Benami Initiative (ABI) and activation of the Benami Adjudicating Authority since 2019.

Benami Adjudicating Authority (BAA) and Anti-Benami Initiative (ABI) are paralysed

The Benami Adjudicating Authority (BAA) and Anti-Benami Initiative (ABI), the two bodies of Federal Board of Revenue (FBR) are unable to function due to the delay in the appointment of the members of the authority.

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.

The Benami Adjudicating Authority received a total of 81 references from Benami Zones and finalised 59 cases u/s 24 of the Benami Act 2017.

Benami Adjudicating Authority (BAA) and Anti-Benami Initiative (ABI) performance status

Out of 59 cases, in 25 cases, benami assets have been confiscated u/s 25 of the Act. These 59 cases involve an amount of Rs 13.71 billion, the cost of acquisition.

The present market value (for confiscation and auction purposes) is much higher. The said 81 cases include benami properties of all kinds like immovable properties: plots, lands, commercial buildings, house properties, etc.

There are 22 pending cases wherein most of the cases are at the final stage of disposal and established close liaison with the NAB and the State Bank of Pakistan in cases involving multi-party interest & cognizance.

In terms of income and wealth inequality, 40% of the Pakistanis live below the poverty line, top 1% of the population holds almost 22% of total wealth, the bottom 50% hold only 4% of wealth.