Lok Sabha Question No. 3906 (UNSTARRED), answered on 2017-03-24
Subject: Benami Transactions
Ministry: FINANCE
Asked by: KONDA VISHWESHWAR REDDY, SANTOSH AHLAWAT, RANJANBEN BHATT

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 3906 TO BE ANSWERED ON FRIDAY, THE 24 TH  MARCH, 2017

CHAITRA 3, 1939 (SAKA)

## BENAMI TRANSACTIONS

3906: SHRI KONDAVISHWESHWAR REDDY: SHRIMATI SANTOSH AHLAWAT: SHRIMATI RANJANBEN BHATT:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has identified a large number of Benami transactions and has registered a number of cases;
- (b) if so, the number of benami transaction cases registered, punitive action taken against the offenders along with the number of properties attached  during the last  three  years  and  the current year;
- (c) whether  the Government  proposes  to set up empowered  institutions for efficient implementation of Benami Transactions Act; and

(d) if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER MINISTER OF STATE FOR FINANCE (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): Though the Benami Transactions (Prohibition) Act, 1988 has been on the statute book since more than 28 years, the same could not be made operational because of certain inherent defects. With a view to providing effective regime for prohibition of benami transactions, the said Act  was  amended  through  the  Benami  Transactions  (Prohibition)  Amended  Act,  2016.  The amended law empowers the specified authorities to provisionally attach benami properties which can eventually be confiscated. Besides, if a person is found guilty of offence of benami transaction by the competent court, he shall be punishable with rigorous imprisonment for a term not less than one year but which may extend to 7 years and shall also be liable to fine which may extend to 25% of the fair market value of the property.

The Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from1 st  November, 2016.  Several  benami  transactions  have  been  identified  since  the  coming  into  effect  of    the amended law.  Show cause notices for provisional attachment  of  benami properties have

been issued in 140 cases involving properties of the value of about Rs. 200 crore. Out of these, provisional attachment has already been effected in 124 cases. The benami properties attached include deposits in bank accounts and immovable properties.

(c) & (d): The Government has put in place empowered institutions for efficient implementation of the amended law. In exercise of powers conferred under sub-section (2) of section 28 read with section  59  of  the  amended  Prohibition  of  Benami  Property  Transactions  Act,  1988,  vide Notification  No.  SO  3290E,  dated  25.10.2016  the  Central  Government  has  notified  specified Income-tax  authorities  to  act  as  Initiating  Officer,  Approving  Authority  and  Administrator  in respect of benami transactions. Further, vide Notification No. SO 3288E, dated 25.10.2016, the Adjudicating Authority has been notified.

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## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 3906

TO BE ANSWERED ON FRIDAY, THE 24 TH  MARCH, 2017

CHAITRA 3, 1939 (SAKA)

## BENAMI TRANSACTIONS

3906: SHRI KONDAVISHWESHWAR REDDY: SHRIMATI SANTOSH AHLAWAT: SHRIMATI RANJANBEN BHATT:

## Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has identified a large number of Benami transactions and has registered a number of cases;
- (b) if so, the number of benami transaction cases registered, punitive action taken against the offenders along with the number of properties attached  during the last  three years  and the current year;
- (c) whether  the Government  proposes  to set up empowered  institutions for efficient implementation of Benami Transactions Act; and
- (d) if so, the details thereof and the steps taken by the Government in this regard?

## ANSWER MINISTER OF STATE FOR FINANCE

## (SHRI SANTOSH KUMAR GANGWAR)

- (a) & (b): Though the Benami Transactions (Prohibition) Act, 1988 has been on the statute book since more than 28 years, the same could not be made operational because of certain inherent defects. With a view to providing effective regime for prohibition of benami transactions, the said Act  was  amended  through  the  Benami  Transactions  (Prohibition)  Amended  Act,  2016.  The amended law empowers the specified authorities to provisionally attach benami properties which can eventually be confiscated. Besides, if a person is found guilty of offence of benami transaction by the competent court, he shall be punishable with rigorous imprisonment for a term not less than one year but which may extend to 7 years and shall also be liable to fine which may extend to 25% of the fair market value of the property.

The Benami Transactions (Prohibition) Amendment Act, 2016 came into effect from1 st  November, 2016.  Several  benami  transactions  have  been  identified  since  the  coming  into  effect  of  the amended law. Show cause notices for provisional attachment of benami properties have been issued  in  140  cases  involving  properties  of  the  value  of  about  Rs.  200  crore.  Out  of  these, provisional attachment has already been effected in 124 cases. The benami properties attached include deposits in bank accounts and immovable properties.

- (c) & (d): The Government has put in place empowered institutions for efficient implementation of the amended law. In exercise of powers conferred under sub-section (2) of section 28 read with section  59  of  the  amended  Prohibition  of  Benami  Property  Transactions  Act,  1988,  vide Notification  No.  SO  3290E,  dated  25.10.2016  the  Central  Government  has  notified  specified Income-tax  authorities  to  act  as  Initiating  Officer,  Approving  Authority  and  Administrator  in respect of benami transactions. Further, vide Notification No. SO 3288E, dated 25.10.2016, the Adjudicating Authority has been notified.

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