Govt sends out notices in 140 cases under benami law
The government has issued notices in 140 cases involving properties with a value of Rs 200 crore under the Benami Transactions (Prohibition) law.business Updated: Mar 24, 2017 17:44 IST
The government has issued notices in 140 cases involving properties with a value of Rs 200 crore under the Benami Transactions (Prohibition) law.
“Showcause notices for the provisional attachment of benami properties have been issued in 140 cases involving properties of the value of Rs 200 crore. Out of these, provisional attachment has already been affected in 124 cases,” Minister of State for Finance Santosh Kumar Gangwar said in a written reply in the Lok Sabha.
“The benami properties attached include deposits in bank accounts and immovable properties.”
The Benami Transactions (Prohibition) Amendment Act, 2016, came into effect from November 1, 2016.
Though the Benami Transaction (Prohibition) Act, 1988, has been on the statue book for more than 28 years, the same could not be made operational because of certain inherent defects, the minister said.
To provide an effective regime for prohibition of benami transactions, the said Act was amended through Benami Transaction (Prohibition) Amended Act, 2016, he added.
The amended law empowers specified authorities to provisionally attach benami properties that can eventually be confiscated.
If a person is found guilty on this count by the competent court, he will be punishable with rigorous imprisonment for a term not less than one year which may be extended to 7 years and is also liable to pay fine that may extend to 25% of the fair market value of the property.