Benami Transactions (Prohibition) Act, is an Act of the Parliament of India that prohibits To address these deficiencies, several years later, in , the Govt of India introduced “Benami Transactions (Prohibition) Bill, “. Benami Transactions (Prohibition) Bill, Purpose: To prohibit holding property Benami and restrict the right to recover or transfer such property. THE BENAMI TRANSACTIONS (PROHIBITION) ACT, An Act to prohibit benami transactions and the right to recover properly held benami and for.
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The chairperson must be a sitting or retired judge of a High Court who has completed at least five years of service. The Bill seeks to amend the Benami Transactions Act, Witness Protection Scheme in India.
Benami Transactions (Prohibition) Act, – Wikipedia
Any person who enters into benami transactions, or abets or induces another person to enter into such transactions shall be punishable with an imprisonment for six months to two years, and liable to a fine of up benxmi 25 per cent of the fair market value of the property held in benami. This limits the scope of litigation regarding benami transactions.
However, it is not a benami transaction, given that the sources of the money used to pay for the consideration is known, if the property is held by:. The Initiating Officer may hold the property for 90 days from the date of issue of the notice, subject to permission from the Approving Authority. Skip to main content. Benami is a South Asian word that means “without name” or “no name”.
Certain sessions courts would be designated as Special Courts for trying any offences which are punishable under the Bill. However, the act was criticised owing to the several loopholes it had. Retrieved from ” https: Once a property is confiscated, all rights and title of such property shall vest completely in the central government and no compensation shall be payable.
They shall follow the principles of natural justice and prohivition have the power to regulate their own procedures. Any person aggrieved by an order of the Adjudicating Officer shall appeal to the Appellate Tribunal. The Administrator shall issue the notice for the surrender or forcible takeover of possession of the benami property.
The Benami Transactions (Prohibition) Bill, | PRS
These provisions do not apply to any transaction entered into by an individual in the name of his spouse, brother or sister, or any lineal ascendant or descendant may not be considered benami. Appeals against orders of bil Appellate Tribunal will lie to the high court. These include cases when a property is held by: Inthe Law Commission of India prohibitiom studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue.
The Times Of India. The Benami Transactions Prohibition Act, An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. The Adjudicating Officer, after hearing the person whose property is attached, may make an order for the confiscation of the property held benami.
The Bill prohibits all prohihition from entering into benami transactions. The Benami Transactions Prohibition Bill, was introduced by the Ministry of Finance in the Lok Sabha on August 18, to enact a new legislation to prohibit benami transactions.
The Initiating Officer may issue a notice, after the approval from the Approving Officer, to genami attach any property, which he has reason to believe is held benami. How you can make this new year special. Just complete this form…. Due to various loopholes and no proper notification, it was a failed legislation and therefore new bill to repeal and replace The act was proposed before the parliament.
In an attempt to curb black money, in JulyModi government decided to amend the original act  which was subsequently passed by the Parliament of India as “The Benami Transactions Prohibition Amendment Act, “.
The Bill provides for Special Courts to try such cases. Adjudicating authority is provided for by this Act to hear the cases benwmi to it by the initiating officer and decide such cases within a period of one year.
Retrieved 26 July This article is closed for comments. The Act defines a transactionss transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person.
All the authorities established under this Act shall have same powers as are vested in a civil court for the purpose of :. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate mechanism for appeals. Although benami transactions are now illegal, the act had limited success in curbing them.
Benami Transactions (Prohibition) Act, 1988
The transactions relating to benami property are known as benami transactions. He shall take prior permission of the Approving Authority regarding such proceedings. Did you find this blog post helpful? In fact, the Federal Court in the case of Panjab Province v. The Administrator has the power to receive and manage the property that is confiscated by the central government as a benami property. A benamidar is a person or fictitious person in whose name the property is held or transferred.
The Act prohibits benami transactions and provides for confiscating benami properties. Talk billl a legal expert on phone and get the advice you need. Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions. Retrieved 17 February Benami properties are not easy to identify as they are usually bull into between relatives, friends, people having a fiduciary relationship, between landlord and tenant, employer and employee or other relationships where there exists an obligation to protect or a fear of some loss.
Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May Any property held in benami shall be confiscated by the central government.
In fact, the act, as noted by the Second Administrative Reforms Commission in the yearwas never notified in the official gazette. The Initiating Officer or the Adjudicating Authority may impound or retain any books of accounts that it may feel is required for the inquiry, for a period not exceeding three months from the date of attachment of the property.
In this Act, the word is used to define a transaction in which the real beneficiary is not the one in whose name the property is purchased. The government realised the loopholes in The Act and the need for a new legislation to overcome them. Any transaction wherein the owner or the person who pays the consideration is fictitious, or wherein the owner is not aware of or denies the ownership of the property shall also be considered as a benami transaction.