After demonetisation, PM Modi vows to tackle "Benami" property
The government is ready to set up institutions for implementation of Benami Transactions (Prohibition) Amendment Act, 2016 (BTP Amendment Act), Prime Minister Narendra Modi said during Mann Ki Baat on Sunday December 25, 2016.
Modi said that the government will soon operationalise a strong law to effectively deal with ‘benami’ properties. Though, he did not said anything about what new rule will be clearly.
The Act was passed much before the demonetisation announcement, which was again targeted black money floating the country.
On July 28, in an attempt to curb it, Lok Sabha had passed the Benami Transactions Amendment Bill, 2015, which aims to ban benami (proxy) transactions and prevent circumvention of law through unfair practices.
The word "benami" means “without name”or “no name”.
The Act had come into effect from November 1. After coming into effect of the BTP Amendment Act, the existing Benami Transactions (Prohibition) Act, 1988 was renamed as Prohibition of Benami Property Transactions Act, 1988 (PBPT Act).
In July, Finance Minister Arun Jaitley, tabled the bill in the Lok Sabha and said the legislation was predominately an anti-black money measure and its purpose is to seize benami property and prosecute those indulging in such activities.
"A lot of people who have unaccounted money buy benami property in the name of fictitious persons ... these transactions have to be discouraged," he said.
Properties of the Prohibition of Benami Property Transactions Act:
The PBPT Act defines benami transactions and prohibits them, stating that the violation of the act will be punishable with imprisonment and fine.
It prohibits the recovery of the property held benami from the benamidar by the real owner.
Properties held benami are liable for confiscation by the government without payment of compensation.
An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.
The Adjudicating Authority referred to in section 6(1) of the Prevention of Money Laundering Act, 2002 (PMLA) and the Appellate Tribunal referred to in section 25 of the PMLA have been notified as the Adjudicating Authority and Appellate Tribunal, respectively, for the purposes of the PBPT Act.
A Joint / Additional Commissioner of Income-tax, an Assistant / Deputy Commissioner of Income-tax and a Tax Recovery Officer in each Pr.
CCIT Region have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively under the PBPT Act.