The government on Thursday introduced in the Lok Sabha a comprehensive Bill to have stricter control over benami transactions, including provisions for confiscation of such property and imprisonment.
The Benami Transactions (Prohibition) Bill 2011, introduced by Finance Minister Pranab Mukherjee, will replace the existing Benami Transactions (Prohibition) Act, 1988.
The Bill seeks to prohibit the holding of property in benami and restrict the right to recover or transfer such property.
Uncompensated confiscation
It also seeks to provide a mechanism and procedure for the confiscation of property held in benami without any compensation.
The proposed law will prohibit all benami transactions, 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, the 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 at least six months and up 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.
Black money
Benami transactions are one of the ways in which black money is circulated and invested.
