The government will not allow financial frauds and scams committed by the fraudulent Modarabas companies in the name of Islam.
This has been stated by MNA Ch. M. Barjees Tahir during the meeting of the Sub-committee of the National Assembly Standing Committee on Finance & Revenue held at the SECP head office.
A parliamentary panel has directed the Securities and Exchange Commission of Pakistan (SECP) to place appropriate safeguards in the Modaraba Companies & Modarabas (Floatation & Control) (Amendments) Bill, 2020 to avoid scams like “Double Shah” in the future.
Sub-committee of the National Assembly Standing Committee on Finance & Revenue met at the SECP head office under the chairmanship of Ch. M. Barjees Tahir on Thursday.
Ch. M. Barjees Tahir directed the SECP that the Modaraba Companies & Modarabas (Floatation & Control) (Amendments) Bill, 2020 must be amended in such a way so that the frauds like “Double Shah” and Gujranwala and KP scams must not happen again. After a long period of 42 years, the government is amending the Modaraba law. No one should be allowed to blackmail investors as well as poor people in the name of Islam, he added.
The committee also recommended the SECP provide protection to the investors in the Modaraba companies. Bills of rupees of the general public are still stuck up in the Modaraba scams. In the past scams like Double Shah are similar frauds that have taken place which must be averted through effective legislation, committee members observed.
The SECP team made a presentation on the salient features of the Modaraba Companies & Modarabas (Floatation & Control) (Amendments) Bill, 2020. Sub Committee, which includes MNAs Salahuddin Ayubi, Engr. Sabir Hussain Kaim Khani, and Ms. Wajiha Qamar, made comments during a comprehensive review of the draft bill. Subcommittee agreed to endorse its reviewed draft to NA Standing Committee on Finance & Revenue.
The proposed Modaraba Companies and Modaraba (Floatation and Control) Ordinance, (Amendment) Bill, 2020 seeks to mitigate the reputational and operational risks and enhance the image and operational framework of modarabas as a pure Islamic financial institution of the country.
To be honest the word “Islamic Banking” itself contradict with Islam. There is no such thing in Quran with such name how all banks are using then? There should be “Interest Free” banking which Allah and his Prophet PBUH recommended us. Using words like Modaraba etc not make is as per Islamic law as well.