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Bill for stricter control over benami transactions

Last Updated: Thursday, August 18, 2011 - 14:29

New Delhi: A comprehensive bill to have
stricter control over benami transactions, including
provisions for confiscation of such property and imprisonment,
was introduced in the Lok Sabha on Thursday.

The Benami Transactions (Prohibition) Bill 2011,
introduced by Finance Minister Pranab Mukherjee, will replace
the existing Benami Transactions (Prohibition) Act, 1988.
According to the Statement of Objects and Reasons, the
Bill has been brought to prohibit holding property in benami
and restrict the right to recover or transfer such property.

It also seeks to provide a mechanism and procedure for
confiscation of property held benami without any compensation.

The proposed law will prohibit benami transactions by any
person, except deals entered into in the name of spouse,
brother, sister or any lineal ascendant or descendant.

The Bill contains elaborate provisions to deal 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.
Under the proposed law, anyone violating the rule can be
jailed for not less than six months, which may be extended to
two years and also be liable to a hefty fine.

The bill enables the Central Government, in consultation
with the Chief Justice of High Court, to designate one or more
Courts of Session as Special Court or Special Courts for the
purpose of the legislation.

Benami transactions are one of the notorious sources of
circulation and investment of black money. The government has
been facing heat on black money from the Supreme Court, civil
society and Opposition for not doing enough to check the
menace.

PTI

First Published: Thursday, August 18, 2011 - 14:29

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