With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements:
- 1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
- 2. Properties held benami are liable for confiscation by the Government.
- 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?
1 only
2 only
1 and 3 only
2 and 3 only
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC IAS – 2017
Statement 2 is correct. The PBPT Act explicitly provides for the confiscation of benami properties by the Adjudicating Authority, after due process, once the property is determined to be benami.
Statement 3 is incorrect. The amended PBPT Act establishes various authorities for investigation (Initiating Officer, Approving Authority) and adjudication (Adjudicating Authority). Crucially, the Act also provides for an appellate mechanism, the Appellate Tribunal, to hear appeals against the orders of the Adjudicating Authority. Further appeals can be made to the High Court.
– Benami properties are subject to confiscation by the government.
– The Act provides for investigative, adjudicating, and appellate authorities.