Cabinet approves draft of Benami Transaction Prohibition Bill 2011

New Delhi, July 21 (ANI): The Union Cabinet today approved a proposal for enactment of a new legislation in the form of the Benami Transactions Prohibition Bill 2011.

Briefing reporters here after the meeting, Information and Broadcasting Minister Ambika Soni said this will replace the existing Act which was adopted in 1988.

Soni said the Bill contains elaborate provisions dealing with the definition of Benami transaction and property and a procedure for implementing the law.

The Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law, an official release said.. roperties held by a coparcener in a Hindu undivided family and property held by a person in fiduciary capacity are excluded from the definition of benami transaction. Further, properties acquired by an individual in the name of spouse, brother or sister or any lineal ascendant or descendant are benami transactions which are not prohibited. Consequently, they are not subject to penal provisions.

Where any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into such benami transaction, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years and shall also be liable to a fine.

A benami property shall also be liable for confiscation by the Adjudicating Authority after the person concerned has been given due opportunity of being heard. (ANI)