CURRENT AFFAIRS

Detailed explanation-1: -The Benami Transactions (Prohibition) Amendment Bill, 2015 was introduced in Lok Sabha on May 13, 2015 by the Minister of Finance Mr. Arun Jaitley. The Bill seeks to amend the Benami Transactions Act, 1988.

Detailed explanation-2: -About: The Act amended the Original Act (Benami Transaction (Prohibition) Act 1988) and renamed it as Prohibition of Benami Property Transaction Act, 1988.

Detailed explanation-3: -In August 2022, the Supreme Court had held that Benami Transactions (Prohibition) Amendment Act, 2016, does not have retrospective application and the authorities cannot initiate or continue criminal prosecution or confiscation proceedings for transactions entered into prior to the coming into force of the legislation.

Detailed explanation-4: —(1) No person shall enter into any benami transaction. [(2)] 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.

Detailed explanation-5: -The Prohibition of Benami Property Transactions Act, 1988. The Act defines a Benami transaction as a transaction where a property is held by or transferred to a person but has been provided for or paid by another person. Therefore, the property is not held in the name of the real owner, but in somebody else’s name.