Benami Transactions (Prohibition) Amendment Act, 2016

The Indian government has been making efforts to combat black money and corruption, and one of the key measures in this battle has been the Benami Transactions (Prohibition) Amendment Act, 2016. The act aims to curb the practice of purchasing properties in fake names, also known as “Benami transactions.” This type of transaction has been a significant source of black money in India. However, several provisions of the act were recently struck down by the Supreme Court, leading the Central Government to request an open court hearing for a review of the judgement.

What are Benami Transactions?

Benami transactions refer to property-related transactions conducted under a fictitious name or if the identity of the beneficial or real owner is not known. These transactions are used to launder black money and are illegal in India.

The Benami Transactions (Prohibition) Amendment Act, 2016

The Benami Transactions (Prohibition) Amendment Act, 2016 was introduced to expand the definition of Benami transactions and include stricter punishment for those involved in such activities. The act defined a benami transaction as any property that is the subject of a transaction or is held for the immediate or future benefit of a person, but the property is recorded in the name of another person.

Provisions of the act that were struck down by the Supreme Court

However, several provisions of the act were recently struck down by the Supreme Court, including the provision that allowed the government to attach and confiscate benami properties without giving the owner an opportunity to be heard. The court deemed this provision to be unconstitutional and in violation of the principles of natural justice.

Central Government’s request for an open court hearing

The Central Government has now requested an open court hearing from the Supreme Court for a review of the judgement. The government is seeking to challenge the decision to strike down several provisions of the act and reinstate them as they believe they are necessary to effectively combat the menace of black money in India.