The Benami Transactions(Prohibition) Amendment Act 2016 amends the The Benami Transaction(Prohibition) Act,1988.
- To curb the black money in the form of cash and non cash
- To curb the benami transactions which are in form of movable and immovable property
- To fill the gaps in original act and to make stricter provisions
- Persons indulging in the benami transactions will be imprisoned up to 7 years and fine
- Furnishing false information is punishable by imprisonment up to 5 years and fine
- Properties held benami are confiscated by government without compensation
- Initiating officer may pass an order to continue holding the property and refer it to adjudicating authority which may examine the evidences and pass an order
- Appellate tribunal can hear against the order of Adjudicating Authority and high court can hear against the order of Appellate Authority
- This act has stringent rules who violate the rules of the law
- It has the potential to reduce the benami transactions and there by black money
- Has multiple levels for appealing which may take time taking process.Though it will ensures the justice is done to the persons involved and to the innocents
Any law however strict is effective only when it is implemented properly. This act also has the potential to be a game changer in preventing the benami transactions in the economy, its implementation decides its effectiveness.