What is the law according to the new Benami Act

927 votes

"Prohibition of the right to recover property held benami -
(1) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property.

(2) No defence based on any right in respect of any property held benami, whether against the person in whose name the property is held or against any other person shall be allowed in any suit, claim or action by or on behalf of a person claiming be the real owner of such property.

Advocate Ishan Rohan LawRato

631 votes

It provides specific liability and make it as an offence keeping benami property and also provides for confiscation of the said property. In the said they have specifically defined what kind of transactions will be termed as benami transactions. The focus is on that if there is any benami transaction in favor of blood relation or family member then the income source should be clear I.e. the source of income should be clear and not hidden. Further if somebody denies knowing about any such transaction done in favor of one person by someone else and the source of income is not clear then also it is a punishable offence having punishment of imprisonment and also confiscation of property.

Advocate Harshit Jain LawRato

569 votes

The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner. Properties held benami are liable for confiscation by the government without payment of compensation. The new law also provides for an appellate mechanism in the form of an adjudicating authority and appellate tribunal. For the purpose, the adjudicating authority referred to in section 6(1) and appellate tribunal referred to in section 25 of the Prevention of Money Laundering Act, 2002 (PMLA), have been assigned the task under PBPT Act as well.

Advocate Anil Upadhyay LawRato