| 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 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? |
A) . Only 1
B) Only 2
C) 1 and 3
D) 2 and 3
Correct Answer: B
Solution :
Exp. [b] Benami Property Transactions Act, 1988 has been amended by the Benami Transactions (Prohibition) Amendment Act, 2016 (BTP Amendment Act). The rules and all the provisions of the BTP Amendment Act shall come into force on November 1, 2016. After coming into effect of the BTP Amendment Act, the existing Benami Transactions (Prohibition) Act 1988 shall be renamed as Prohibition of Benami Property Transactions Act 1988 (PBPT Act). With reference to the above definition of PBPT Act: Statement 1 A property transaction will be treated as a Benami transaction if the owner of the property is aware/not aware of the transaction Statement 2 As per the 2016 (Amendment) Act, properties held Benami are liable for confiscation by the government, without payment of compensation. Statement 3 An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.
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