Benami Transaction act
CA SKSONI
(Querist) 05 October 2009
This query is : Resolved
What is effect of changes in Benami Transaction ( Prohibition ) Act.? Can now benami transactions can not be proved in courts. ?
Raj Kumar Makkad
(Expert) 06 October 2009
Benami transactions have no meaning now after the enforcement of aforementioned act. Now property shall be regarded owned by the person it depicting in the record and benami transaction now cannot be proved in courts.
Sachin Bhatia
(Expert) 06 October 2009
THE BENAMI TRANSACTIONS (PROHIBITION) ACT, 1988
Sec 3. Prohibition of benami transactions- (1) No person shall enter into any benami transaction.
(2) Nothing in sub-section (1) shall apply to the purchase of property by any person in the name
of his wife or unmarried daughter and it shall be presumed, unless the contrary is proved, that the
said property had been purchased for the benefit of the wife of the unmarried daughter.
(3) Whoever enters into any benami transaction shall be punishable with imprisonment for a term
which may extend to three years or with fine or with both.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence
under this section shall be non-cognizable and bailable.
