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Government issues show-cause notices in 140 cases under benami transactions law

Under Benami Transactions (Prohibition) Law, The Government Has Issued Show-cause Notices In 140 Cases Involving Properties With A Value Worth Rs 200 Crore.

PTI | Updated on: 24 Mar 2017, 06:52:33 PM
Representative Image (PTI)

New Delhi:

Under Benami Transactions (Prohibition) law, the government has issued show-cause notices in 140 cases involving properties with a value worth Rs 200 crore.

“Show-cause 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.

Also read: Benami Act violators to face double whammy of legal action

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.

Also read: I-T dept registers over 230 cases, attaches assets worth Rs 55 crore under Benami Transactions Act

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 per cent of the fair market value of the property. 

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First Published : 24 Mar 2017, 06:48:00 PM