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2016 Act mandates Central Government confiscation of benami properties
This document is the official text of the Benami Transactions (Prohibition) Amendment Act, 2016, published in the Gazette of India, which amends the 1988 Act to strengthen the prohibition of benami property transactions.
It matters to citizens because it defines what constitutes a benami transaction, establishes new adjudicating authorities, and mandates the confiscation of such properties by the Central Government.
Who it concerns: The document concerns the Central Government, the Adjudicating Authority, the Appellate Tribunal, beneficial owners, benamidars (persons in whose name property is held), and any individual or entity entering into property transactions in India.
What the document says
- The Act renames the principal legislation to the 'Prohibition of Benami Property Transactions Act, 1988'.
- It defines 'benami transaction' to include transactions where consideration is paid by one person but property is held by another for the benefit of the payer, with specific exceptions for HUFs, fiduciary capacities, and immediate family members where consideration comes from known sources.
- Section 5 states that any property subject to a benami transaction is liable to be confiscated by the Central Government.
- Section 6 prohibits a benamidar from re-transferring the property to the beneficial owner; any such re-transfer is deemed null and void.
- The Act establishes an Adjudicating Authority consisting of a Chairperson and at least two Members, appointed by the Central Government.
- Qualifications for the Chairperson and Members include being a former Commissioner of Income-tax (Indian Revenue Service) or Joint Secretary (Indian Legal Service).
- Entering into a benami transaction after the commencement of the 2016 Amendment Act is punishable under Chapter VII of the Act.
Also in the document
- The definition of 'benami transaction' explicitly excludes transactions involving possession taken in part performance of a contract under Section 53A of the Transfer of Property Act, 1882, provided stamp duty is paid and the contract is registered.
- The Act defines 'property' broadly to include movable or immovable, tangible or intangible assets, as well as proceeds from such property.
- The document specifies that the Adjudicating Authority's jurisdiction may be exercised by Benches constituted by the Chairperson.
How this was written
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The original document
Government documents surfaced by the press
Government document · Ref. 43f584cae3839387
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