B enami Property Law (PBPT)
In general the consideration for acquiring any property is paid for by the owner of the property except cases of gifts where the consideration is paid by a person whereas the property is owned by another person who receive and own such property by way of gift.
However even in cases other than gifts, where the consideration is provided by a person but the title of the property is acquired in the name of another person, such transactions were permissible in India before 1988. These kind of transactions, technically and legally, are called as Benami Transactions. Such benami transactions were prohibited in India from 1988 by enacting a law “The Benami Transactions (Prohibition) Act, 1988”. However this law could not be implemented as the rules and regulations were not notified till the year 2016. This law was substantially amended and enhanced in its scope in the year 2016 by enacting “The Benami Transactions (Prohibition) Amendment Act, 2016”.
The new benami law has come into force from 1st Nov, 2016 and provides for the attachment and confiscation of any benami property and it further provides for prosecution of the perpetrators of benami transaction in cases where such benami transactions are entered into to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors. Thus in India the benami transactions are strictly prohibited and provides for strict enforcement of law having statutory provisions of confiscation of benami properties by the Central Government and apart from that having provisions of imprisonment which may extend up-to 7 years.
VGNC has a strong team of lawyers and chartered accountants practicing in this law from the very beginning of its enactment in the year 2016. We provide legal services and represent our clients before the Adjudicating Authority, Appellate Tribunal and appeals before High Court and Supreme Court.
We also represent our clients in the course of trial in prosecution proceedings. Apart from that we provide advisory services in this law to face enquiries and investigation at the stage of Enforcement Agency.
We also provide due diligence services and setting up of internal controls to ensure due compliance of law to avoid any unwanted litigation and inquiries.
