CorporateAct No. 45 of 1988In Force

The Benami Transactions (Prohibition) Act, 1988

Prohibits benami transactions — where property is held in the name of a person other than the real beneficial owner — and provides for confiscation of such property. Substantially amended in 2016, the Act now has a rigorous enforcement mechanism with the Initiating Officer, Adjudicating Authority, and Appellate Tribunal. Criminal penalties include imprisonment up to seven years.

Sections

Ministry

Ministry of Finance

Last Amended

2016-08-11

Key Provisions

→Definition of benami transaction and benamidar

→Prohibition on entering into benami transactions

→Four categories of property that fall within the Act

→Provisional attachment and confiscation of benami property

→Adjudicating Authority — powers and procedure

→Appellate Tribunal for Benami Transactions

→Criminal liability: rigorous imprisonment up to 7 years and fine up to 25% of value

→Exceptions: property held for benefit of spouse or unmarried daughter

Related Practice Areas

regulatory-compliance real-estate banking-finance

benamibenami transactionbenamidarconfiscationproperty held in another's name

Section-by-Section Reference

We are building detailed section-by-section breakdowns for Benami Act with plain English explanations. Subscribe to be notified when it is published.

Need Expert Advice on Benami Act?

Corpus Juris Legal advises Delhi NCR businesses and institutions on all matters under Benami Act. Partner-led attention from first advice to resolution.

Free Consultation

Indian government legislation is in the public domain under S.52(1)(q) of the Copyright Act, 1957. This reference is for educational purposes. Laws are amended frequently — verify the current text on the e-Gazette of India before relying on it for legal proceedings.