The Benami Transactions (prohibition) Amendment Act, 2016
-'Benami transaction-' means a transaction or an arrangement, where a property is transferred to, or is held by, a person, and the consideration for...
The Benami Transactions(Prohibition) Act, 1988 here in after referred to as the Principal Act
The Benami Amendment Act came into effect from November 1 2016. It prohibits illegal benami transactions. "Benamidar" means a person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name.
"Benami transaction" means a transaction or an arrangement, where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration.
"Person" shall include
(i) An individual
(ii) A Hindu undivided family
(iii) A company
(iv) A firm
(v) An association of persons or a body of individuals
"Property" means assets of any kind, whether movable or immovable, tangible or intangible, corporeal or incorporeal and includes any right or interest or legal documents or instruments evidencing title to or interest in the property and where the property is capable of conversion into some other form, then the property in the converted form and also includes the proceeds from the property;
"Transfer" includes sale, purchase or any other form of transfer of right, title, possession or lien.According to the The Benami Transactions (Prohibition) Amendment Act, 2016 no person, being a benamidar shall re-transfer the benami property held by him to the beneficial
Why in News:
The Prime Minister Narendra Modi said in Goa Meeting, “We are going to take action against the properties which are purchased in the name of others (benami) that is the property of the country”. So there is no doubt that the government will be taking stringent steps against 'benami' properties. This act is a major step to eradicate corruption and black money for the benefit of the country.
owner or any other person acting on his behalf. The Benami Transactions (Prohibition) Act, 1988 was enacted to prohibit benami transactions and the right to recover property held benami.
The act clearly talks about prohibition of benami transactions. No person shall enter into any benami transaction. Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. Whoever enters into any benami transaction on and after the date of commencement of the Benami Transactions (Prohibition) Amendment Act, 2016.
Offences and prosecution according to Benami Transactions (prohibition) Amendment Act, 2016Penalty for benami transaction: Where any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into the benami transaction, shall be guilty of the offence of benami transaction.
Whoever is found guilty of the offence of benami transaction shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five per cent of the fair market value of the property.
Any person who is required to furnish information under this Act knowingly gives false information to any authority or furnishes any false document in any proceeding under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which may extend to ten per cent. of the fair market value of the property .