Benami Transactions--Amendment Act

Amendments in Benami Transactions (Prohibition) Act, 1988, by Enacting Benami Transaction (Prohibition) Amendment Act, 2016, and Rules Framed Thereunder

S.S. Agrawal

One of the most worrisome problems of successive governments of our country is that of so-called black money with its attendant consequences. Black-money can broadly be defined as ill-gotten money, which has not been declared for payment of taxes and other purposes. This money is kept in different forms, including immovable and movable properties; including gold/silver and other precious metals; cash etc. Some such money is also hidden in walls and or floors/roofs of immovable properties, in form of gold or currency or currency notes. Since persons keeping such properties are not owner thereof, the same is kept clandestinely, so that these may come in eye of government/others. Government does make efforts to find the said black money by searches etc. However, the experience is that only a small portion thereof could be located. Present Modi-government promised, during the course of it its comaign, that his government would bring out substantial black money, which are hidden in Indian or abroad, and said money would be sufficient to deposit few lacs rupees in account of each person. Government did make efforts but got little success. Even recent amnesty scheme did not bring desired results. It was, therefore, felt that since major portion of black money is kept in form of benami properties, law be enacted to confiscate such Benami Properties by suitably amending Benami Property Transaction Act, 1988 and thus, amending Act was brought on statute book. The amended Act, inter alia, prohibits benami transactions and provides for confiscating benami properties. Rules under the amending Act have since been framed and, thus, the government is ready to implement the amended Act and take steps to confiscate such properties.