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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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. A benamidar is a person or fictitious person in whose name the property is held or transferred.
Defence Defence National International Industry. In case it is held to be benami property attachment order shall be confirmed. The Bill also seeks to establish an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority. Retrieved from ” https: Section 4 provides that no suit, claim or action to enforce any right in respect of any property held benami can be filed or taken against the person in whose name the property is held on behalf of the person claiming to be the real owner nenami the real owner can also not take any benam based on any right in respect of the property held benami.
It is also important that time limits have been provided under the Act for giving notices and benaki the orders by different authorities and accordingly, a time bound procedure has been provided under the Act. 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.
Find this comment offensive? Definition of above mentioned terms provided in section 2 of prohkbition Act are relevant for the purpose of rpohibition and enforcement of provisions of the Act. Judicial Member shall be a member of Indian Legal Service who holds the post of Additional Secretary or equivalent post.
Analysis of Provisions of Prohibition of Benami Property Transactions Act, 1988
It has, however, been provided in benammi 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.
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.
In case there is no transactiin fide fransaction of the individual in acquiring the property in the names of above-mentioned relations, then he can always consider the amount paid by him for purchase of the property as gift to the person, namely, brother or sister or mother or father and in terms of provisions of section 56 2 vii of the Act, such gift will also not be chargeable in their hands. You can do any thing and everything, without even the guidance of any one.
A question can be raised that if property can independently be acquired in the name of spouse or children, why there is a condition that property in the name of brother or sister or even in the name of father or mother can only be jointly with the individual providing the consideration and not singularly in their names.
Section 52 of the Act probibition provides for appeal to the High Court against the order passed by the special court. At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property.
In case it is held not to be benami property attachment order shall be revoked.
New Benami law to allow property in spouse, siblings’ name
Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions. Printable version Jan 1, Will be displayed Will not be displayed Will be displayed.
The Bill restricts the right of any person who is claiming to be the real owner to recover such property. The Act prohibits benami transactions and provides for confiscating benami properties.
Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Skip to main content. The Act also provides for filing of appeal against the order passed by the Adjudicating Authority for confiscation of the property to the Appellate Tribunal.
The obvious reason for above provision transactipn 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 Parliament had in passed the Benami Act, but it was never implemented as the rules were not framed. Archived from the original PDF on Please Email the Editor. 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. Section 6 provides that benamidar shall not re-transfer the property to the beneficial owner or any other person acting on prohibitin behalf, meaning thereby that property cannot be transferred by the benamidar genami the real owner or beneficiary.
The first limb of the definition is quite important and according to it any transaction or arrangement is benami transaction: Foul language Slanderous Inciting hatred against a certain community Others.
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. In addition, no person shall be able to re-transfer such property to the beneficial owner.