‘Benami’ property in spouse’s name OK’d

Briefing reporters after a Cabinet meeting,Information and Broadcasting Minister Ambika Soni said: “…properties acquired by an individual in the name of spouse,brother or sister or any lineal ascendant or descendant are benami transactions which are not prohibited”.

She said the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property,prohibited benami transactions,consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law.

The Parliament had in 1988 passed the Benami Act,but it was never implemented as the rules were not framed. The Act had allowed such deals in the name of wife or unmarried daughter. Besides,it had a longer term of imprisonment of up to three years.

Explaining the need for a fresh law,the minister said: “…it was found that owing to infirmities in the (1988) legislation,formulation of rules would not be possible without a comprehensive legislation by repealing the Act”.

Benami transactions are one of the sources of circulation and investment of black money. The government has been facing heat on black money from the Supreme Court,civil society and Opposition for not doing enough to deal the menace.

Under the proposed new law,anyone violating the rule can be jailed for not less than six months,which may be extended to two years and also be liable to a fine.

Soni further said: “Properties held by coparcener in a Hindu undivided family and property held by a person in fiduciary capacity are excluded from the definition of benami transaction”.

She said “a benami property shall also be liable for confiscation by the adjudicating authority after the person concerned has been given due opportunity of being heard”.

Benami,a Persian word,means without name. In such transactions a property is purchased in someone else’s name.

The person in whose name the property is purchased is not the real beneficiary but merely represents the real owner.

The minister said after Cabinet’s approval,the proposed Bill would be tabled in Parliament. She,however did not offer a timeline.