The scam-ridden Adarsh housing society
Loopholes in the Benami Transactions (Prohibition) Act, 1988, allow proliferation of black money through such deals, especially in property -- in the controversial Adarsh Society alone, 35 flats are allegedly owned in benami names.
The planned legislation will empower designated government agencies to seize benami properties. Unlike the present Act, the onus of proving that the property in dispute is not benami would rest on the owner and not the authorities.
The Ministry of Finance is ready with the Benami Transactions (Prohibition) Bill, 2011, and it has reportedly been cleared by the Union Law Ministry. Sources told The Indian Express that the Central Board of Direct Taxes is studying the proposed amendments and is expected to give its comments soon.
The new law provides for setting up of fast-track courts to deal with such transactions. Appeal in the matters will lie with the respective high court, which will have to be satisfied that a substantial question of law is involved before taking up the appeal.
The proposed Bill also aims to bar the owner or his legal heirs from giving any defence in respect of the benami property. More importantly, once a property has been held benami, the owner would not be allowed to launch any legal proceedings to recover such a property.
While the previous Act applied only to tripartite transactions and did not cover bipartite or sham transactions, the proposed amendments would take all this into account.
The amendments also provide for prison term up to two years and fines for anybody found guilty.
Source: Indian Express