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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It is a property that is held by some other person than the one who pays the consideration for such property.

All About Benami Properties And Recent Legal Developments

These include cases when a property is held by: Retrieved 28 October Vide this act, all the benami transactions are prohibited and made an offence against the state.

The author discusses recent legal developments concerning benami properties. The Adjudicating Officer, after hearing the person whose property is attached, may make an order for the confiscation of the property held benami. The chairperson must be a sitting or retired judge of a High Court who has completed at least five years of service.

Related Articles Lok Sabha passes Bill to check benami transactions. The aim of the Benami Transactions Prohibition Act, was to prohibit benami transactions and punish those who participated in such transactions as they had become a method by the corrupt for tax evasion, land concentration and money laundering.

Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions. Unlawful Activities Prevention Act. The Bill restricts the right of any prohibitoon who is claiming to be the real owner to recover such property. Thereafter, the Government prohbiition the provisions of the act to come into force from 1 November Benami is a South Asian word that means “without name” or “no name”.

Inthe Law Commission of India after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue. The government realised the loopholes in The Act and the need for a new legislation to overcome them. However, the bill failed to pass.


The Bill seeks to amend the Benami Transactions Act, After the grant of permission, the initiating officer shall have the power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, property, books of account documents, assets, or other documents, in respect of any other relevant matters under the amended Benami Act [5].

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. 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.

This page was last edited on 5 Novemberat The Bill also seeks to establish an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Trnasactions. At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property. Any person aggrieved by an order of the Adjudicating Officer shall appeal to the Appellate Tribunal.

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Once a benam is confiscated, all rights and title of such property shall vest completely in the central government and no compensation shall be payable.

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.

If an order is passed to continue holding the property, the Initiating Officer will refer the case to the Adjudicating Authority.

Benami Transactions (Prohibition) Act, 1988

Any person aggrieved by the judgment of the Adjudicating Authority may file an appeal with the Appellate Authority. Transactiosn of Non-Disclosure Agreements in India. An effort was made again in the year to pass The Benami Transactions Prohibition Amendment Bill, which was successfully passed in both the houses and therefore, the Benami Transactions Prohibition Amendment Act, was enforced on 1 st November Retrieved 17 February In fact, the Federal Court in the case of Panjab Province v.


In an attempt to curb black money, in JulyModi government decided to amend the original act [8] transactione was subsequently passed by the Parliament of India as “The Benami Transactions Prohibition Amendment Act, “. We will call you within 2 working hours. The Initiating Officer may issue a notice, after the approval from the Approving Officer, to provisionally attach any property, which he has reason to believe is held benami.

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. Archived from the original PDF on It shall have the powers of a civil court while trying matters with respect to [13]:. The Bill amends this definition to add other transactions which qualify as benami, such as property transactions where: The act is clearer and has stringent punishments for offenders.

Appeals against orders of the Appellate Tribunal will lie to the high court. Based on an order to confiscate the benami property, the Administrator will receive and manage the property in a manner and subject to conditions as prescribed.

The Administrator has the power to receive and manage the property that is confiscated by the central government as a benami property. These are then received, managed and prohibittion of by the administrators appointed under this act.

To address these deficiencies, several years later, inthe Govt of India introduced “Benami Transactions Prohibition Bill, “. August 02, Printable version Dec 31, Daulat Singh [1] has said: