Section 3. Prohibition of

3. Prohibition of benami transactions.— (1) No person shall enter into any benami transaction. 2* * * * * 3[(2)] Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. 4[(3) Whoever enters into any benami transaction on and after the date of commencement of the Benami Transactions (Prohibition) Amendment Act, 2016 (43 of 2016) shall, notwithstanding anything contained in sub-section (2), be punishable in accordance with the provisions contained in Chapter VII.] 5* * * * * 3. The provisions of the Ordinance received a mixed response from the press and the public. There had been criticism also that the Ordinance was a half-hearted measure and had not tackled the problem effectively and completely. It was, therefore, felt that the Bill to replace the Ordinance may be brought out as a comprehensive law on benami transactions touching all aspects and accordingly the Lew Commission was requested to examine the subject in all its ramifications. The Law Commission has submitted its 130th Report titled " Benami Transactions—a Continuum" and has made certain recommendations.