Benami Property Transactions Act
Question
With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements:
Which of the statements given above is/are correct?
- 1.
A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
- 2.
Properties held benami are liable for confiscation by the Government.
- 3.
The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Options
1 only
2 only
1 and 3 only
2 and 3 only
Explanation
Statement 1 is incorrect: A benami transaction is defined as one where a property is held in the name of one person but the money or consideration has been provided by another. Whether or not the nominally registered owner is aware is irrelevant to the classification as benami. Statement 2 is correct: Under the PBPT Act (1988), properties identified as held in benami are liable to confiscation by the Government, and ownership is transferred to the state. Statement 3 is incorrect: The Act provides for authorities and investigations, and it does provide for appellate mechanisms; individuals have the right to appeal decisions. Only statement 2 is fully correct. > Benami Property Act: Benami = property in one name, funds from another; properties confiscable; appellate rights exist; awareness irrelevant. Answer: (b).
Question details
Year
2017
Paper
GS Paper 1
Question
Q20
Subject
Polity
Sub-topic
Legal Framework and Acts
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
Legal Acts and Regulations
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