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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Retrieved from ” https: 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.
All you need to know about benami transactions Bill
However, the act was criticised owing to the several loopholes it had. In fact, the act, as noted by the Second Administrative Reforms Commission in the yearwas never notified in the official gazette. The Judicial Member must trqnsactions 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 prohbition have held the post of Chief Commissioner of Income-tax or equivalent post in that Service.
What updates do you want to see in this article? In fact, the Federal Court in the case of Panjab Province v. 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 transsactions months to two years, and liable to a fine of up transacfions 25 per cent of the fair market value of the property held in benami.
The Administrator 2101 have the power to receive and manage the property which has been confiscated. August 02, It shall consist of a chairperson and not less than two other members  who must have been a member of Indian Revenue Service or Indian Legal Service.
How you can make this new year special. From Wikipedia, the free encyclopedia. The act came into force on 5 September 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.
A benamidar is a person or fictitious person in whose name the property is held or transferred. To address these deficiencies, several years later, inthe Govt prohigition India introduced “Benami Transactions Prohibition Bill, “. All the authorities established under this Act shall have same powers as are vested in a civil court for the proyibition of :.
It also tries to plug in the loopholes of the previous act.
Benami Transactions (Prohibition) Act, 1988
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 .
The act bans all benami transactions and gives the government pronibition right to recover property held benami without paying any compensation. The Bill prohibits all persons from entering into benami transactions. The Bill provides that the Adjudicating Authority and the Appellate Tribunal established under the Prevention of Money laundering Act,shall also be the same traneactions the purposes of this Act.
trandactions 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. 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.
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 also specifies certain cases will be exempt from the definition of a benami transaction.
Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May 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 bfnami and money laundering.
The act defines a ‘benami’ transaction as any transaction in which property is transferred to one person for consideration paid by another person. Unlawful Activities Prevention Act. He shall take prior permission of the Approving Authority regarding such proceedings.
The government realised the loopholes in The Act and the need for a new legislation to overcome them. It is a property that is held by some other person than the one who pays the consideration for such property.
The Benami Transactions (Prohibition) Bill, | PRS
This article is closed for comments. The Bill seeks to amend the Benami Transactions Act, At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property. If an order is passed to continue holding the property, the Initiating Officer will refer the case to the Adjudicating Authority. Under the Act, the penalty for entering into benami transactions is imprisonment up to three years, or prohobition fine, or both.
The Times Of India. Please Email the Editor. Private defense under IPC. If an Initiating Officer believes that a person is a benamidar, rpohibition may issue a notice to that person. 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 20011 of the property shall also be considered as a benami transaction.
The author discusses recent legal developments concerning benami properties. Just complete this form…. The Bill also seeks to establish an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority. An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto.