{"id":91445,"date":"2025-06-01T10:56:45","date_gmt":"2025-06-01T10:56:45","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=91445"},"modified":"2025-06-01T10:56:45","modified_gmt":"2025-06-01T10:56:45","slug":"with-reference-to-the-prohibition-of-benami-property-transactions-act","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/","title":{"rendered":"With reference to the &#8216;Prohibition of Benami Property Transactions Act"},"content":{"rendered":"<p>With reference to the &#8216;Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)&#8217;, consider the following statements:<\/p>\n<ul>\n<li>1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.<\/li>\n<li>2. Properties held benami are liable for confiscation by the Government.<\/li>\n<li>3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.<\/li>\n<\/ul>\n<p>Which of the statements given above is\/are correct?<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;1 and 3 only&#8221; option4=&#8221;2 and 3 only&#8221; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2017<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2017.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2017\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">\nStatement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered &#8216;benami&#8217;. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar&#8217;s full understanding of its legal implications.<br \/>\nStatement 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.<br \/>\nStatement 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.<br \/>\n<\/section>\n<section id=\"pyq-key-points\">\n&#8211; The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions.<br \/>\n&#8211; Benami properties are subject to confiscation by the government.<br \/>\n&#8211; The Act provides for investigative, adjudicating, and appellate authorities.<br \/>\n<\/section>\n<section id=\"pyq-additional-information\">\nThe PBPT Act was originally passed in 1988 but remained largely ineffective. It was significantly amended in 2016, renaming it the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and strengthening its provisions regarding definition, authorities, and penalties. The amendment aimed to curb black money and illegal property holdings.<br \/>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to the &#8216;Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)&#8217;, 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 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to the &#8216;Prohibition of Benami Property Transactions Act\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/#more-91445\">Detailed Solution<span class=\"screen-reader-text\">With reference to the &#8216;Prohibition of Benami Property Transactions Act<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1101,1099,1104],"class_list":["post-91445","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1101","tag-indian-polity-and-governance","tag-the-parliamentary-act","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to the &#039;Prohibition of Benami Property Transactions Act<\/title>\n<meta name=\"description\" content=\"Statement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered &#039;benami&#039;. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar&#039;s full understanding of its legal implications. 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. - The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions. - Benami properties are subject to confiscation by the government. - The Act provides for investigative, adjudicating, and appellate authorities.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to the &#039;Prohibition of Benami Property Transactions Act\" \/>\n<meta property=\"og:description\" content=\"Statement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered &#039;benami&#039;. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar&#039;s full understanding of its legal implications. 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. - The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions. - Benami properties are subject to confiscation by the government. - The Act provides for investigative, adjudicating, and appellate authorities.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T10:56:45+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to the 'Prohibition of Benami Property Transactions Act","description":"Statement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered 'benami'. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar's full understanding of its legal implications. 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. - The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions. - Benami properties are subject to confiscation by the government. - The Act provides for investigative, adjudicating, and appellate authorities.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/","og_locale":"en_US","og_type":"article","og_title":"With reference to the 'Prohibition of Benami Property Transactions Act","og_description":"Statement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered 'benami'. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar's full understanding of its legal implications. 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. - The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions. - Benami properties are subject to confiscation by the government. - The Act provides for investigative, adjudicating, and appellate authorities.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T10:56:45+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/","name":"With reference to the 'Prohibition of Benami Property Transactions Act","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T10:56:45+00:00","dateModified":"2025-06-01T10:56:45+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Statement 1 is incorrect. A benami transaction, as defined by the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) as amended in 2016, typically involves a property held by one person (the benamidar) for the benefit of another person (the beneficial owner). The definition focuses on the *nature* of the transaction and the *real* ownership, not whether the benamidar is aware that the transaction is legally considered 'benami'. Awareness might be relevant in proving intent or defence, but the transaction can still be treated as benami regardless of the benamidar's full understanding of its legal implications. 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. - The PBPT Act deals with property held in the name of one person where the consideration has been paid by another person, with certain exceptions. - Benami properties are subject to confiscation by the government. - The Act provides for investigative, adjudicating, and appellate authorities.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-the-prohibition-of-benami-property-transactions-act\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC IAS","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-ias\/"},{"@type":"ListItem","position":3,"name":"With reference to the &#8216;Prohibition of Benami Property Transactions Act"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=91445"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/91445\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=91445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=91445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=91445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}