The Prohibition of Benami Property Transactions Act, 1988 · VIII — MISCELLANEOUS

Section 5. Omitted by s. 6, ibid. (w.e.f. 1-11-2016). 6. Omitted by s. 7, ibid . (w.e.f. 1-11-2016)

In force · As amended up to 2026-08

5. Omitted by s. 6, ibid. (w.e.f. 1-11-2016). 6. Omitted by s. 7, ibid . (w.e.f. 1-11-2016). 7. Subs. by s. 8, ibid ., for s. 5 and 6 (w.e.f. 1-11-2016). 8. Ins. by s. 9, ibid . (w.e.f. 1-11-2016). 5. The recommendations of the Law Commission have been examined. It is felt that all the recommendations of the Law Commission. except the recommendation regarding authorising voluntary organisations to file complaints before tribunals and the appointment of an authority, like the Charity Commissioner, for supervising private trusts, may be specifically provided in the Bill, and the other two recommendations would, it is felt, come into effect automatically as a result of the prohibition of benami transactions and the provision for acquisition of all properties held benami . The Bill accordingly provides for the following, among other things, namely:— (a) entering into benami transactions after the commencement of the new law will be an offence, with an exception for the transfer of properties by the husband or father for the benefit of the wife or unmarried daughters; (b) all the properties benami will be subject to acquisition by such authority, in such manner and after following such procedure. as may be prescribed by rules under the proposed legislation. As a result of the provisions of the Ordinance and the prohibition of entering into benami transactions, the benamidar would be acquiring the rights to the property by the mere lending of his name and without investing any money for the purchase of such property. Accordingly, it is provided that no amount shall be payable for the acquisition of any property held benami ; (c) sections 81 and 94 of the Indian Trusts Act, 1882 shall also be repealed.

Source: India Code