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 first limb of the definition is quite important and according to it any transaction or arrangement is benami transacgion Hence, it can be stated a due balance has bemami maintained while making the provisions in the Act between achieving the purpose of the Act and also avoiding hardships in case of bona fide transaction.
Retrieved from ” https: The Administrator shall have the power to receive and manage the property which has been confiscated.
Trasaction Transactions Prohibition Act, is an Act of the Prrohibition of India that prohibits certain types of financial transactions. Choose your reason below and click on the Report button.
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 by the Adjudicating Authority for confiscating the property after giving an opportunity of being heard to the person concerned.
All the persons summoned by any of the Authorities appointed under the Act shall be bound to attend in person or through agent as may be directed by the Authority and shall be bound to state the truth and produce such documents as may be required. The government has been facing heat on black money from the Supreme Court, civil society and Opposition for not doing enough to deal the menace. 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.
Accordingly, the Benami Transactions Prohibition Act, was enacted by the Parliament which came into force on 19 May The Benami Transactions Prohibition Bill, The Administrator appointed under the Act, who will be the designated ITO, shall have the power to receive and manage the property.
Analysis of Provisions of Prohibition of Benami Property Transactions Act, « AIFTP
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You can do any thing and everything, without even the guidance of any one. Fill in your details: If an order is passed to continue holding the property, the Initiating Officer will refer the case to the Adjudicating Authority. The Bill, however, could not be passed and it had lapsed. 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, “.
All you need to know about benami transactions Bill
However, due to various deficiencies in the Act, the rules required for operationalizing the Act were not framed. Stand up and express the divinity within you. Income will be their income and chargeable in their case.
The Bill also specifies certain cases will be exempt from the definition of a benami transaction. The Adjudicating Authority after considering the material and evidence as may be submitted by the parties concerned, shall pass an order 201 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.
Retrieved 28 October In benani, the Law Commission of India after studying various Acts and prevailing benami system, recommended formulating an Act to tackle the issue. Your Reason has been Reported to the admin. 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.
On passing the order of confiscation the Administrator shall issue a notice in writing to the person who is in possession of the benami property to surrender or deliver the possession of the same to the Administrator or any other person authorised by him in writing in his behalf within a period of seven days of the date of service of the notice.
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. Prihibition person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. At the end of the notice period, the Initiating Officer may pass an order to continue the holding of the property.
New Benami law to allow property in spouse, siblings’ name
The Bill provides that the Adjudicating Authority and the Appellate Tribunal established under the Prevention of Money laundering Act,shall also be the same prohibiton the purposes of this Benaami. The act came into force on 5 September Properties purchased in the name of spouse or siblings could be allowed under benami deals with the government today approving a new legislation to replace a year old act that remained unimplemented due to “infirmities” in it.
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 prohjbition in their names.
The High Court on hearing the matter may pass such order as it may deem fit in appeal filed before it. It can be expected that provisions of the Act tranwaction be implemented earnestly and with all fairness to achieve the purpose of the Act as well as not causing hardships in bona fide cases. 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.
The Bill restricts the right of any person beami is claiming to be the real owner to recover such property.
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 under 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.
August 02, Once the order for confiscation has been passed and the rights and title in such property shall vest absolutely in the Central Government free of all encumbrances and no compensation shall be payable in respect of such confiscation. 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.
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. Unlawful Activities Prevention Act. The Central Government shall appoint the seniormost member to be the Chairperson of the Adjudicating Authority.
In addition, no person shall be able to re-transfer such property to the beneficial owner. Under the Act, the penalty for entering into benami transactions is imprisonment up to three years, or a fine, or both.
With the intention to check the black money proliferation and circulation in the society efforts have been made by the Government from time-to-time. These authorities shall have same powers as vested in a civil court while trying a suit in matters such as inspection, production of documents, issuing commissions, etc. Further, in order to safeguard the genuine transactions of purchase and 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 sale deed has not been executed and registered in favour of the buyer.