With reference to the Prohibition of Benami Property Transaction Act, 1988 (PBPT Act), consider the

Question

With reference to the Prohibition of Benami Property Transaction Act, 1988 (PBPT Act), consider the following statements:A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.Properties held benami are liable for confiscation by the Government.The Act provides for three authorities for investigations but does not provide for any appellate mechanism.Which of the statements given above is/are correct?

Accepted Answer

Salient features of Prohibition of Benami Property Transaction Act, 1988 (PBPT Act):The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine.The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner.The definition of a benami transaction has been widened to include a transaction made in a fictitious name; where the owner is not aware or denies knowledge of the ownership of the property or the person providing the consideration for the property is not traceable.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.Source Citation: Business Standard, PIB