The Benami Transactions Prohibition Act was enacted in 1988. Despite this Act being enacted in 1988, as there were various shortcomings in the Act, a new Amendment Act was introduced renaming the Title as The Benami Transactions (Prohibition) Amendment Act, 2016 consequent of which the full-fledged Act is renamed as "The Prohibition of Benami Property Transactions Act, 1988."
Benami transaction advisory is core feature of S K Nagda & Company, the top CA In Udaipur. The expression “Benami” denotes transactions for the benefit, not of the persons taking part in the transactions but of the persons or persons not mentioned in the transaction.
In other words, benami transactions are transactions where the property is purchased in the name of one person but the consideration for the said purchase is paid by the other person and therefore the former will be the nominal owner while the latter will be the beneficial or real owner of the property. To curb and prohibit such practice, this Act has a crucial role to play. Under the act an authority to Benami transaction was established by the rules regarding it like Initiating Officer, Approving Authority, Administrator and Adjudicating Authority. S K Nagda & Company is the best Benami Property Transaction Advisory Firm in Udaipur Rajasthan India
Brief Procedure of the Act:
- The Initiating Officer (IO), if he has reason to believe that any person is Benamidar in respect of a property he may issue notice U/s 24(1) (after recording reasons in writing).
- Notice to be sent to Beneficiary Owner if his identity is known.
- IO may make provisional attachment of a property upto a period of 90 days and thereafter IO is obliged to: (a) Pass an order for continuation of the provisional attachment of the property, or
- In case provisional attachment is continued, the IO shall within 15 days draw up a STATEMENT OF CASE and refer it to the Adjudicating Authority.
- Notice of hearing U/s 26 is to be issued to Benamidar, Beneficial Owner, any Interested Party (including Banking Company) and any person who has made a claim in respect of the property.
(b) Revoke the provisional attachment of the property (prior approval of Approving Authority is mandatory in both situations)
- The Adjudicating Authority may suomoto or on application strike out or add the name of any party.
- The Adjudicating Authority is to decide whether the property referred is Benami or not. If it is held to be Benami, then attachment order to be confirmed; if it is not held as Benami, then attachment order to be revoked.
- The order is to be passed by AA within one year from the end of the month in which reference/ statement of case/ documents received from IO.
- Aggrieved Party has right of appeal before Appellate Tribunal u/s. 30 of the Act.
- Confiscation of the property only after the order passed by the Appellate Tribunal. Based on an order to confiscate the benami property the administrator will receive and manage property as per the terms of order.