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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The clause, however, excludes genuine family cases like holding of property in the name of spouse or children or in the name of Karta or a member of HUF or in a fiduciary capacity by a trustee, executor, partner or director of a company.
She 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. It is also important that time limits have been provided under the Act for giving notices and passing the orders by different authorities and accordingly, a time bound procedure has been provided under the Act.
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, “.
To see your saved stories, click on link hightlighted in bold. The act defines a ‘benami’ transaction as any transaction in which property is transferred to one person for consideration paid by another person.
Any person aggrieved by an order of the Adjudicating Officer shall appeal to the Appellate Tribunal. This will alert our moderators to take action. Section 53 provides that where any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any person who abates or induces any person to enter into a benami transaction shall be guilty of the offences of benami transaction.
Income will be their income and chargeable in their case. It is stated that provisions of the Act are quite stringent and any person who is involved in benami transaction or any person who abets or induces such transaction shall be liable for the prosecution. Although benami transactions are now illegal, the act had limited success in curbing them. Society does not go down because of the activities of criminals, But because of the inactivities of the good people.
Offences and prosecution Apart from confiscation of benami property, sections 53 to 55 of the Act also provide for prosecution of the persons involved in benami transactions.
Section 6 provides that benamidar shall not re-transfer the property to the beneficial owner or any other person acting on his behalf, meaning thereby that property cannot be transferred by the benamidar to the real owner or beneficiary. Benami Transactions Prohibition Act. Sub-section 2 of section 24 also provides where a notice has been issued to the benamidar in respect of the property, a copy of same shall also be issued to the beneficial owner if his identity is known.
The Bill also seeks to establish an Appellate Tribunal to hear transactiin against any orders passed by the Adjudicating Authority. Section 27 of the Act further transaxtion that in case an order has been passed by the Adjudicating Authority holding the property to be benami property, a further order shall be passed by the Adjudicating Authority for confiscating the property after giving an opportunity of being heard to the person concerned.
The aforesaid section empowers the Initiating Officer to issue a notice only if:. Internet Desk July 21, It is well known that there is wide circulation of black money in the society. Authorities shall also have the powers to call for information from any person and require production of documents or books of account and also to impound the books or documents.
New Benami law to allow property in spouse, siblings’ name
Chairman of Appellate Tribunal shall be either a sitting or a retired judge of a High Court who has completed not less than five years of service. Related Articles Lok Sabha passes Bill to check benami transactions. Pursuant to the Act, Rules had also not been framed.
Company Corporate Trends Deals. Necessary safeguards have been provided in the form of making a provision for appeal to Appellate Tribunal and thereafter to the High Court. The Adjudicating Authority on receipt of reference from the Initiating Officer shall issue a notice to the benamidar, beneficial owner or any other prouibition party, including a banking company or a person having any interest in the property for proyibition such documents, particulars or evidence as may be necessary on a date to be specified in the notice.
Definition of above mentioned terms provided in section 2 of the Act are relevant for the purpose of applicability and enforcement of provisions of the Act.
Benami Transactions (Prohibition) Act, – Wikipedia
It was further provided that the beneficial owner will not be entitled to file any claim or suit against the person in whose name the property is held. This page was last edited on 5 Novemberat The Benami Transactions Prohibition Bill, prohibtion Judicial Member shall be a member of Indian Legal Service who holds the post of Additional Secretary or equivalent post.
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Any person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. He is empowered to take such measures as may be necessary and as bena,i be directed by the Central Government to dispose of the benqmi vested in the Central Government in such manner and subject to such conditions as may be prescribed.
Section 52 of the Act also provides for appeal to the High Court against the order passed by the special court. Such special courts shall have all the powers under the Code of Cr.
Views Read Edit View history. The act came into force on 5 September All power is within you; you can do anything and everything.
The Authorities appointed under the Act shall have same powers as are vested in a civil court bfnami 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, receiving evidence on affidavits and any other matter which may be prescribed.
prohibitiom Choose your reason below and click on the Report button. Administrative Member shall be a member of Indian Revenue Service who holds the post benaji Chief Commissioner of Income-tax or equivalent post. A benamidar is a person or fictitious person in whose name the property is held or transferred.
It may be stated that the powers under the Act have been provided to Income-tax authorities to enforce the provisions of the Act and proper safeguards have been provided in section 24 of the Act for issuing the notice for initiating the proceedings.
The powers will be exercised by the Adjudicating Authority through a Bench which may constitute of at least two members. 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 transactioj of benami property or not.
Thereafter, the Government notified the provisions of the act to come into force from 1 November 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. It can be expected that provisions of the Act will be implemented earnestly and with all fairness to achieve the purpose bennami the Act as well benam not causing hardships in bona fide cases.
The Bill prohibits all persons from entering into benami transactions. In addition, any person who wilfully rransaction 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.
Sub-section 1 of section 24 reads as under:.