Karachi: The Federal Appellate Tribunal (FAT), Special Bench Karachi, has ruled that the Benami Transactions (Prohibition) Act, 2017 (BTPA) does not apply to properties acquired through transactions executed before the law’s enactment or declared under the 2019 Asset Declaration Ordinance (amnesty scheme).
The case involved alleged benami property transactions carried out by a Karachi-based developer and builder. In a detailed order, the two-member bench set aside the adjudication and attachment orders issued by the Benami Adjudication Authority, describing them as legally unsustainable.
The tribunal clarified that Benami properties can only be confiscated if they are the subject of transactions executed after the BTPA 2017. There is no mechanism under the law to confiscate properties resulting from pre-2017 transactions, which were legally valid at the time. The bench also emphasized that authorities had exceeded their jurisdiction by applying the law retroactively.
In addition, the tribunal observed that there was no need to re-evaluate the facts or evidence presented by the departments concerning past transactions or amnesty-declared properties. It highlighted procedural gaps, noting that previous reference and confiscation proceedings “suffered basic lacunas.”
The judgment reaffirmed the vested rights of beneficial owners and confirmed that past transactions and amnesty-declared properties remain legally protected.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
