ISLAMABAD: In a significant legal verdict, the Federal Appellate Tribunal, Special Bench Karachi has ruled that the Benami Transactions (Prohibition) Act, 2017 cannot be applied retrospectively to property transactions executed before its enactment or declared under the Asset Declaration Ordinance 2019.
The tribunal clarified that only properties involved in benami transactions after the law came into force can be confiscated for violation. It declared that there is no legal mechanism for confiscating properties acquired through transactions made before 2017, as such dealings were not prohibited under law at that time.
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In its detailed order, the tribunal also set aside the Benami Adjudication Authority’s confiscation order against a Karachi-based developer, stating that both the initiating officer and the authority had overstepped their jurisdiction by applying the law retroactively.
