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. Subsequently, in the year , a Bill called “The Benami Transactions ( Prohibition) Bill, ″, was introduced in the Parliament wherein.
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Once the order for confiscation has been passed and the rights and title in such property shall vest absolutely in the Central Government free of all encumbrances and no compensation shall be payable in respect of such confiscation. Power of the Special Courts Progibition 50 of the Act provides that the Central Government in consultation with the Chief Justice of the High Court shall designate one or more Courts of Sessions as special court or bsnami for respective area or for group of cases transction the purpose of trial of offences punishable under the Act.
The 0211 appointed under the Act shall have same powers as are vested in a civil court under the Code of Civil Procedure,while trying a suit in respect of discovery and inspection, enforcing the attendance of any person compelling the production of books of account and other documents, issuing summons, prohihition evidence on affidavits and any other matter which may be prescribed.
D A transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.
Sub-section 1 of section 24 reads as under: In that situation property will not be held by them for benefit of the person providing consideration and, therefore, will be out of purview of “benami transactions” They will have full right to deal with the property in that case. Judicial Member shall be a member of Indian Legal Service who holds the post of Additional Secretary or equivalent post.
Income will be their income and chargeable in their case. The Act had allowed such deals in the name of wife or unmarried daughter.
August 02, Retrieved 17 February In addition, any person 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. However, due to various deficiencies in the Act, the rules required for operationalizing the Act were not framed.
The aforesaid section empowers the Initiating Officer to issue a notice only if:. The Bill prohibits all persons from entering into benami transactions. 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 transaction 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.
Printable version Jan 1, It has further been provided that the notice shall provide a period of not less than 30 days to the person to whom the notice has been issued to furnish the information sought. To see your saved stories, click on link hightlighted in bold. There are due checks provided in the form of prior approval of Approving Authority and for passing the order by the Adjudicating Authority.
Retrieved 28 October Administrative Member shall be a member of Indian Revenue Service who holds the post of Chief Commissioner of Income-tax or equivalent post. Stand up and express the divinity within you. The act came into force on 5 September This article is closed for comments. It has, however, been provided in sub-section 2 of section 27 that if any person has acquired the property from the benamidar for adequate consideration, prior to issue of the notice by the Initiating Officer without having knowledge of the benami transaction, the Adjudicating Authority shall have no power to confiscate such property.
All you need to know about benami transactions Bill
The Bill also seeks to establish an Appellate Trahsaction to hear appeals against any orders passed by the Adjudicating Authority. The Bill restricts the right of any person who is claiming to be the real owner to recover such property. The Bill seeks to establish four authorities to conduct inquiries or investigations regarding benami transactions: Drag according to your convenience.
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. Foul language Slanderous Inciting hatred against a certain community Others.
Pursuant to the Act, Rules had also not been framed. From Wikipedia, the free encyclopedia. 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 obvious reason for above provision is that normally a person would acquire the property in the name of the spouse or in the name of the children out of his own funds, but he will never acquire the property independently in the name of brother or sister with his own money.
The Adjudicating Authority after considering the material and evidence as may be submitted by the parties concerned, shall pass an order within a period of one year from end of the month in which reference was received from the Initiating Officer holding whether property is in the nature of benami property or not.
Sub-section 4 of the section 24 provides that the Initiating Officer shall make such enquiries and call for such reports or evidence as he may deem fit and after considering of relevant material shall within a period of 90 days take a decision whether proceedings have to be taken further in respect of the property or not.
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. Find this comment offensive?
The Benami Transactions (Prohibition) Bill, | PRS
Although benami transactions are now illegal, the act had limited success in curbing them. In case it is held not to be benami property attachment order shall be revoked. The Benami Transactions Prohibition Bill, At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property.
Will be displayed Will not be displayed Will be displayed. Hill said the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law. 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 shall within a period of 15 days from the date of his passing the necessary order for continuing the proceedings shall draw up a statement of facts and refer the matter to the Adjudicating Authority. Definition of above mentioned terms provided rtansaction section 2 of the Act are relevant for the purpose of applicability and enforcement of provisions of the Act.
In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions.