UPSC Prelims 2017 Question:

With reference to the ‘Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)’, consider the following statements

1. A property transaction is not treated as a 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?

Explanation: 

• Under the Benami Transactions (Prohibition) Amendment Act, 2016, Benami transaction means any transaction in which property is transferred to one person for a consideration paid or provided by another person and Property means property of any kind, whether movable or immovable, tangible or intangible, and includes any right or interest in such property.
  
  
• According to the Act, a property transaction is considered and treated as Benami Transaction Act even if the owner is not aware of any such  transaction. So, statement 1 is not correct.
  
  
• All properties held benami shall be subject to acquisition by the Government, in such manner and after following such procedure as may be prescribed and no amount shall be payable for the acquisition of any benami property. So, statement 2  is correct.
  
  
• The act establishes  four authorities for conducting  investigations and enquiries in Benami Transactions; Initiating Officer, Approving Authority, Administrator and Adjudicating Authority. It has also established Appellate Mechanism in the form of Adjudicating Authority and Appellate Tribunal. So, statement 3 is not correct.
  
  

Therefore, option (2) is the correct answer.

Subject: Polity | Bills and Acts