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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 government realised the loopholes in The Act and the need for a new legislation to overcome them. Benami property in its literal sense means a property that does not have any name. Once a property is confiscated, all rights traneactions title of such property shall vest completely in the central government and no compensation shall be payable.

The Administrator shall issue the notice for the surrender or forcible takeover of possession of the benami property. Although benami transactions are now illegal, the act had limited success in curbing them. How you can make this new year special. Talk to a legal expert on phone and get the advice you need.

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.

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 Act 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. The act defines a ‘benami’ benmi as any transaction in which property is transferred to one person for consideration paid by another person.

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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. It shall consist of a chairperson and not less than two other members [8] who must have been a member of Indian Revenue Service or Indian Legal Service.

The act is clearer and has stringent punishments for offenders. Did you find this blog post helpful? In force Benami Transactjons Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions.

The Benami Transactions Prohibition Bill, It also tries to plug in the loopholes of the previous act. The Bill seeks to amend the Benami Transactions Act, Skip to main content. In fact, the Federal Court in the case of Panjab Province v.

Any person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. 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 to 25 per cent of the fair market value of the property held in benami.

The government led by the then Prime Minister Manmohan Singh introduced The Benami Transactions Prohibition Bill in the year before the parliament to repeal The Act, however, the bill was not passed by the parliament due to lack of support by the members of parliament.

Views Read Edit View history. 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 also specifies certain cases will be exempt from the definition of a benami transaction. The Administrator shall have the power to receive and manage the property which has been confiscated.

At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property. It shall have the powers of a civil court while trying matters with respect transactiions [13]:.


All About Benami Properties And Recent Legal Developments

Thereafter, the Government notified the provisions of the act to come into force from 1 November Login with your social accounts: 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.

We will call you within 2 working hours. Log into your account. 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.

A benamidar is a person or fictitious person in whose name the property is held or transferred. The Bill also seeks to establish an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority.

The act provides for an initiating officer who shall start the proceedings against the benami transactions.

The Benami Transactions (Prohibition) Bill, | PRS

The Administrator has the power to receive and manage the property that is confiscated by the central government as a benami property.

Any property held in benami shall be confiscated by the central government.

Daulat Singh [1] has said: All the authorities established under this Act shall have same powers as are vested in a civil court for the purpose of [10]:. The act came into force on 5 September The Bill restricts the right of any person who is claiming to be the real owner to recover such property.