Over 70 real estate agents on FBR radar for 'dollar transfer to UAE via Hundi'

ISLAMABAD: The Federal Board of Revenue (FBR) has prepared a list of more than 70 real estate agents allegedly involved in remitting dollars to the United Arab Emirates (UAE) through Hundi/Hawala for investment in property markets, causing pressure on the exchange rate in recent days, The News has learnt.

Top official sources confirmed in background discussions that a substantial amount of cash was transferred into foreign currency, especially US dollars from the open market and sent out to Dubai/UAE through Hundi/Hawala for making investment in real estate.

The amount runs into millions of dollars as the exchange rate witnessed slight pressures in the recent couple of weeks.

“The FBR has raised an alarm bell and prepared a list of real estate agents who are involved in such practices. It is tip of a mega scandal but requires further investigations from the FIA and other relevant authorities,” top official sources said when The News contacted it on Tuesday.

The relevant authorities prepared a list of over 70 real estate agents who secured cash from their clients and converted it into foreign exchange from the open market. Then, they remitted the foreign exchange to Dubai/UAE markets for making investments in the property/real estate sectors, said the sources.

Property tycoons warned the government that investment might shift to Dubai/UAE if tax rates, and no question asked limit is to be increased from Rs10 to Rs25-50 million under the proposed Tax Laws Amendment Bill 2024, which was still pending before the National Assembly Standing Committee on Finance and Revenues.

However, the FBR was given two-month timeframe to develop an App for making volunteer changes in the filed returns so that the value of declared assets could be amended voluntarily.

According to the prepared list, the FBR and other relevant departments found that certain real estate agents are allegedly involved in remitting foreign exchange to Dubai market. When contacted by real estate sector representatives, they said it was a routine practice that the money was transferred with the help of exchange companies for investment in Dubai because there was no question asked on the source of income. So around two million Dirham was transferred to buy properties. Such practice continued for the last several years. They said they asked the government to provide incentives to discourage the transfer of foreign exchange through Hawala/Hundi as there was a dire need to reduce taxes on properties.