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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NIFTY 50 10, 2. B A transaction or an arrangement in respect of a property carried out or made in a fictitious name; or.
New Benami law to allow property in spouse, siblings’ name
Thereafter, the Government notified the provisions of the act to come into force from 1 November 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. Any right of any third party created in such property with a view to defeat the bebami of this Act shall also be deemed to be null and void.
Retrieved 28 October 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. With the intention to check the black money transactioj and circulation in the society efforts have been made by the Government from time-to-time. To see your saved stories, click on link hightlighted in bold. Further, in order to safeguard the genuine transactions of purchase bejami sale of property an exception has also been provided that a transaction covered by section 53A of Transfer of Property Act will also not be deemed to be benami transaction in case full consideration for the same has been paid by the buyer to the seller and possession of the property has been taken by the buyer and stamp duty on such transaction has also been paid and the contract has been registered though benamj deed has not been executed and registered in favour of the buyer.
Section 27 of the Act further provides 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 transction the Adjudicating Authority for confiscating the property after transacyion an opportunity of being heard to the person concerned.
Benami Transactions (Prohibition) Act, 1988
Unlawful Activities Prevention Act. 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. Internet Desk July 21, It is well known that there is wide circulation of black money in the society. Stand up and express the divinity within you.
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The Benami Transactions (Prohibition) Bill, | PRS
Printable version Jan 1, This section, however, has an exception, which was provided in Income Disclosure Scheme, that in case the real owner has declared his undisclosed income under that scheme then benamidar can transfer the property to the real owner before In case the property is held jointly by more than one person, notice shall be issued to all persons holding the property. In conclusion, it is stated that provisions of the Act appear to be quite effective for the purpose of checking the benami transactions and as a result thereof to check evasion of tax and black money circulation in the society.
Sub-section 1 of section 24 reads as under:. Section 51 of the Act provides for appointment prohinition Public Prosecutor conducting the cases on behalf of the authorities.
Apart from confiscation of benami property, sections 53 to 55 of the Act also provide for prosecution of the persons involved in benami transactions. Provisions of the Act for discussion purpose can be categorised in following four heads as under: 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.
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 and the real owner can also not take any defence based on any right in respect of the property held benami.
Machinery provided under the Act The Act provides for attachment and confiscation of benami property.
If the property is held in the name of brother or sister or lineal ascendant or descendant, exemption is benzmi only if same is held jointly with the individual, who has provided the consideration for the property. The Act also provided that all properties held benami shall be subject to acquisition by the Government. She said the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering benaml a prohibited benami transaction and the procedure for implementing the benami law.
The first limb of the definition is quite important and according to it any transaction or arrangement is benami transaction: This will alert our ttansaction to take action Name Reason for reporting: 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 prohbition knowledge of the benami transaction, the Adjudicating Authority shall have no power to confiscate such property.
Judicial Member shall be a member of Indian Legal Service who holds the post of Additional Secretary tranxaction equivalent post. 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. From Wikipedia, the free encyclopedia.
With a view to have quick prohibktion of the matters it has also been provided that such courts shall make every endeavour to conclude the trial within a period of 6 months from the date of filing of the complaint.
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 prohibotion the matter to the Adjudicating Authority.
Benami Transactions (Prohibition) Act, – Wikipedia
Retrieved from ” https: Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions.
The Bill also specifies certain cases will be exempt from the definition of a benami transaction. The Bill, however, could not be passed and it had ttansaction. In case there is no mala fide intention 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.
Once a property is confiscated, all rights and title of such property shall vest completely in the central government and no compensation shall be payable.