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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All About Benami Properties And Recent Legal Developments
The Bill amends this definition to add other transactions which qualify as benami, such as property transactions where: The Bill provides that the Adjudicating Authority and the Appellate Tribunal established under the Prevention of Money laundering Act,shall also be the same for the purposes of this Act. It transactios have the powers of a civil court while trying matters with respect to :. After the grant of transadtions, the initiating officer shall have the power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, yransactions, books of account documents, assets, or other documents, in respect of any other relevant matters under the amended Benami Act .
Did you find this blog post helpful? 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 Act defines a benami transaction as a transaction where a property is held by or transferred tranxactions a person, but prohibitiln been provided for or paid by another person. 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 restricts the right of any person who is claiming to be the real owner to recover such property. Retrieved from ” https: 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. If the Initiating Officer has reason to believe that a property is held benami, he may issue a notice to the benamidar and call for documents and reports for inquiry.
Any person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. It also tries to plug in the loopholes of the previous act.
Talk to a legal expert on phone and get the advice you need. Under the Act, the penalty for entering into benami transactions is imprisonment up to three years, or a fine, or both.
The Bill prohibits all persons from entering into benami transactions. In addition, no person shall be able to re-transfer such property to the beneficial owner.
The government led by the then Prime Minister Manmohan Singh introduced The Benami Transactions Prohibition Bill in the year before the transactione to repeal The Act, however, the bill was not passed by the parliament due to lack of support by the members of parliament.
The Bill defines benami transaction as an arrangement where a property is held by a person other than in fiduciary capacity on behalf of another person who has paid for it; or b the billl is made for a property in a fictitious name; or c the owner of the property is not aware of or denies knowledge of such ownership.
This article is closed for comments. The Bill seeks to: Any property held in benami shall be confiscated by the central government. The act is clearer and has stringent punishments for offenders. Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May A benamidar is a person or fictitious person in whose name the property is held or transferred.
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 year.
Benami Transactions (Prohibition) Act, – Wikipedia
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. Views Read Edit View history.
An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. Retrieved 17 February 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 relationships where there exists an obligation to protect or a fear of some loss.
The Bill seeks to establish four authorities to conduct inquiries or investigations regarding benami transactions: If an order is passed to continue holding the property, the Initiating Officer will refer the case to the Adjudicating Authority.
All you need to know about benami transactions Bill – The Hindu
The Adjudicating Officer, after hearing the person whose property is attached, may make an order for the confiscation of the property held benami. The Adjudicating Authority shall consist of a chairperson and at least two other members, one of whom shall be a Judicial member and the other an Administrative member and the bench shall sit in the National Capital Territory of Delhi.
In addition, any person who wilfully gives false information shall be liable to an imprisonment of three months to two years transactiona a fine of up to 10 per cent of the market value of transactjons property. The author discusses recent legal developments concerning benami properties. This page was last edited on 5 Novemberat Although benami transactions are now illegal, the act had limited success in curbing them. These are then received, managed and disposed of by the administrators appointed under this act.
From Wikipedia, the free encyclopedia. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate mechanism for appeals.
The act defines a ‘benami’ transaction as any transaction in which property is transferred transaactions one person for consideration paid by another person. 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. These authorities shall have same powers as vested in a civil court while trying a suit in matters such as inspection, production of documents, issuing commissions, etc.
The Bill 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. If an Initiating Officer believes that a person is a benamidar, he may issue a notice to that person.
However, the act was criticised prohibjtion to the several loopholes it had. Thereafter, the Government notified the provisions of the act to come into force from 1 November The Administrator shall have the power to receive and manage the property which has been confiscated. The act provides for an initiating officer who shall start the proceedings against the benami transactions. Private defense under IPC.