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, is an Act of the Parliament of India that prohibits certain types of financial transactions. In addition, any person who wilfully gives false information shall be liable to an imprisonment of three months to two years and a fine of up to 10 per cent of the transsction value of the property.
The Bill provides that the Adjudicating Authority and the Appellate Tribunal established under the Prevention of Money laundering Act,shall also be the same for the purposes of this Act. The Act also has safeguard mechanisms such as the adjudicating authority and the appellate mechanism for appeals. The Bill provides for Special Courts to try such cases. 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.
New Benami law to allow property in spouse, siblings’ name
The Adjudicating Authority on receipt of reference from the Initiating Officer shall issue a notice to the benamidar, beneficial owner or any other interested party, including a banking company or a person having any interest in the property for furnishing such documents, particulars or evidence as may be necessary on a date to be specified in benamii notice.
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In force Benami Transactions Prohibition Act, is an Act of the Parliament of India that prohibits certain types of financial transactions. It has further been provided that the notice shall provide a period of not less than 30 days to the person to whom the notice has been issued to furnish the information sought. NIFTY 50 10, 2.
The Bill seeks to establish four authorities to conduct inquiries transaaction investigations regarding benami transactions: The property or the amount, however, will become their asset and they will be holding the same in their own capacity. Updated prohibtion were therefore passed in andseeking to more comprehensively enforce the prohibitions.
The Bill amends this definition to add other transactions which qualify as benami, such as property transactions where: If the property is held in the name of brother or sister or lineal ascendant or descendant, exemption is available only if same is held jointly with the individual, who has provided the consideration for the property. B A transaction or an arrangement in respect of a property carried out or made in a fictitious name; or. In case an appeal has been filed, the order of confiscation passed by the Adjudicating Authority shall be subject to the order of the Appellate Tribunal.
It is also important that time limits have bbill provided under the Act for giving notices and passing the orders by different authorities and prlhibition, a time bound procedure has been provided under the Transactoon. Provisions of the Act for discussion purpose can be categorised in following four heads as under: Explaining the need for a fresh law, the minister said: 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 Act also provides for filing of appeal tranwaction the order passed by the Adjudicating Authority for confiscation of the property to the Appellate Tribunal. Benami Transactions Prohibition Bill Benami transactions are one of the sources of circulation and investment of black money. Section 6 provides that benamidar shall not re-transfer the property to the beneficial owner or any other person acting on his behalf, meaning thereby that property cannot be transferred benaji the benamidar to the real owner or beneficiary.
Section 5 of the Act provides for confiscation of the property by the Central Government. Benami is a South Asian word that means “without name” or “no name”.
Company Corporate Trends Deals. It may be stated that the powers under the Act have been provided to Income-tax authorities to enforce the provisions of the Act and proper safeguards have been provided in section 24 of the Act for issuing the notice for initiating the transactoon.
The Benami Transactions (Prohibition) Bill, | PRS
Any person aggrieved by the Appellate Tribunal in turn may appeal to the High Court. 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.
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.
It is hoped that machinery appointed under the Act shall also act reasonably while implementing the provisions of the Act. The Act had allowed such deals in the name of wife or unmarried daughter.
The Central Government shall appoint the seniormost member to be the Chairperson of the Adjudicating Authority. Any person who enters into benami transactions, or abets or induces another person to enter into such transactions shall be punishable with an imprisonment for six months to two years, and liable to a fine of up to 25 per cent of the fair market value of the property held in benami.
It is well known that there is wide circulation of black money in the society. The Act also provided that all properties held benami shall be subject to acquisition by the Government. The definition further provides that in case property has been converted in any other form then the property in converted form or sale proceeds of the same will also be deemed to be benami property for the purpose of benami transaction.
Appeals against orders of the Appellate Tribunal will lie to the high court. Find this comment offensive? This page was last edited on 5 Novemberat Unlawful Activities Prevention Act.