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.
|Published (Last):||13 February 2004|
|PDF File Size:||10.55 Mb|
|ePub File Size:||4.55 Mb|
|Price:||Free* [*Free Regsitration Required]|
Log into your account.
The Judicial Member must have been a Member of the Indian Legal Service and must have held the post of Additional Secretary or equivalent post in that Service, and an Administrative Member must have been a Member of the Indian Revenue Service and must have held the post of Chief Commissioner of Tranaactions or equivalent post in that Service. The author discusses recent legal developments concerning benami properties.
The act is clearer and has stringent punishments for offenders. Although benami transactions are now illegal, the act had limited success in curbing them. Vide this act, all the benami transactions are prohibited and made an offence against the state.
Benami Transactions (Prohibition) Act, – Wikipedia
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. Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions.
The Adjudicating Authority will examine all documents and evidence relating to the matter and then pass an order on whether or not to hold the property as benami. 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 Bill restricts the right of any person who is claiming to be the real owner to recover such property.
Benami Transactions (Prohibition) Act, 1988
August 02, 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. Defined under Section 4 9a benami transaction means any transaction which is transferred to or held by one person, but the consideration for it is paid by another. 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.
It shall have the powers of a civil court while trying matters with respect to :. They shall follow the principles of natural justice and shall have the power to regulate their own procedures.
The Bill seeks to amend the Benami Transactions Act, Retrieved 17 February All the authorities established under this Act shall have same powers as are vested in a civil court for the prohigition of :. From Wikipedia, the free encyclopedia. Any person aggrieved by the judgment of the Adjudicating Authority may file an appeal with the Appellate Authority.
Subscribe so that you never miss another post! Retrieved from ” https: 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 transacfions.
The Bill seeks to: The Administrator shall have the power to receive and manage the property which has been confiscated. 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.
Please Email the Editor. The government realised the loopholes in The Act and the need for a new legislation to overcome them. The act provides for an initiating officer who shall start the proceedings against the benami transactions. Adjudicating authority is provided for by this Act to hear the cases referred to it by the initiating officer and decide such cases within a period of one tgansactions. Daulat Singh tranaactions has said: In addition, any prohiition who wilfully gives false information shall be liable to an imprisonment of three months to two years and a fine of up to 10 per cent of the market value of the property.
Enforceability of Non-Disclosure Agreements in India.
The Prohibjtion defines a benami 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. Any person aggrieved by an order of the Adjudicating Officer shall appeal to the Appellate Tribunal. However, it is not a benami transaction, given that the sources of the money used to pay for the consideration transaction known, if the property is held by:. The act bans all benami transactions and gives the government the right to recover property held benami without paying any trqnsactions.
Benami properties are not easy to identify as they are usually entered into between relatives, friends, people having a fiduciary relationship, between landlord and tenant, employer and employee or other transactioons where there exists an obligation to protect or a fear of some loss. A benamidar is a person or fictitious person in whose name the property is held or transferred.
India has witnessed benami transactions since a long time. These authorities shall have same powers as vested in a civil court while trying a suit in matters such as inspection, production of documents, prohkbition commissions, etc. Any person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. 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.
In an attempt to curb black money, in JulyModi government decided to amend the original act  which was subsequently passed by the Parliament of Gransactions as “The Benami Transactions Prohibition Amendment Act, “. Inthe Law Commission of India after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue.
What updates do you want to see in this article? At the end of the notice period, the Initiating Officer may pass an prlhibition to continue the holding of the property. In addition, no person shall be able to re-transfer such property to the beneficial owner.