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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Benami is a South Asian word that means “without name” or “no name”. Retrieved 28 October The Adjudicating Officer, after hearing the person whose property is attached, may make an order for the confiscation of the property held benami. Thereafter, the Government notified the provisions of the act to come into force from 1 November However, the act was criticised owing to the several loopholes it had. It is a property that is held by some other person than the one who pays the consideration for such property.
All you need to know about benami transactions Bill
What updates do you want to see in this article? From Wikipedia, the free encyclopedia. The Adjudicating Authority shall consist of a chairperson and at least two other members, one of whom shall be a Judicial member and the other an Administrative member and the bench shall sit in the National Capital Territory of Delhi.
Retrieved from ” https: In fact, the act, as noted by the Second Administrative Reforms Commission in the yearbull never notified in the official gazette. The Bill also seeks to establish an Appellate Tribunal to hear appeals against any orders passed by the Adjudicating Authority. Private defense under IPC. Any property whether movable, immovable, tangible, intangible, or pertains to any right or asset or legal document which has been a subject matter of a benami transaction is known as a benami property.
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Retrieved 26 July Witness Protection Scheme in India. Inthe Law Commission of Transsctions after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue. The Bill provides for Special Courts to try such cases. It also tries to plug in the loopholes of the previous act. These provisions do not apply to any transaction entered into by an individual in the name of his spouse, brother or sister, or ttansactions lineal ascendant or descendant may not be considered benami.
These include cases when a property is held by: Updated versions were therefore passed in andseeking to more comprehensively enforce the prohibitions.
Any person aggrieved by the judgment of the Adjudicating Authority may file an appeal with the Appellate Authority. Adjudicating authority is provided for by this Act to hear the cases referred to it by the initiating officer and decide such cases within a period of one year.
Under the Act, the penalty for entering into benami transactions is imprisonment up to three years, or a fine, or both. Vide this act, all the benami transactions are prohibited and made an offence against the state. The Bill defines benami transaction as an arrangement where a property is bemami 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.
Under the Act, an Authority to acquire benami properties was to be established by the Rules. The act came into force on 5 September Internet Desk July 21, To address these deficiencies, several years later, inthe Govt of India introduced “Benami Transactions Prohibition Bill, “.
Defined under Section 4 9a benami transaction means any transaction which is transferred to or held by one person, but the consideration for it is paid by another. India has witnessed benami transactions since a long time. The Act prohibits benami transactions and provides for confiscating benami properties.
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 ownership of the property shall also be considered as a benami transaction. Archived from the original PDF on Enforceability of Non-Disclosure Agreements in India. 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.
All the authorities established under this Act shall have same powers as are vested in a civil court for the purpose of :. The transactions relating to benami property are known as benami transactions. The Bill seeks to establish four authorities to conduct inquiries or investigations regarding benami transactions: Printable version Dec 31, 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.
Views Read Edit View trasnactions. The Initiating Officer or the Adjudicating Authority may impound or retain any books of accounts trannsactions it may feel is required for the inquiry, for a period not exceeding three months from the date of attachment of the property. However, due to various deficiencies in the Act, the rules required for operationalizing the Act were not framed.
He shall take prior permission of the Approving Authority regarding such proceedings.
Benami Transactions (Prohibition) Act, – Wikipedia
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 concentration and money laundering. In this Act, the word is used to define a transaction in which the real beneficiary is not the one in whose name the property is purchased.
The Bill seeks to amend the Benami Transactions Act, If an Initiating Officer believes that a person is a benamidar, he may issue a notice to that person.