Demonstrating on the grounds its resolve to fight corruption, the UPA government proposes a new law to crack down on benami transactions in the country, which will empower the authorities to confiscate such properties.
Benami Transaction (Prohibition) Bill 2011, which will replace the existing 1988 law, is high on the agenda of the scheduled meeting of Union Cabinet on Thursday.
Confirming this sources in the government said, “Union Cabinet is likely to take up the finance ministry proposed Benami Transaction (Prohibition) Bill 2011 at its meeting on Thursday, which will be chaired by Prime Minister Manmohan Singh. Once passed by the Parliament the new law will replace the existing one, which was enacted in 1988.”
The loopholes in the present law allow proliferation of black money through benami deals, especially in property related transactions, sources said, adding that in the controversial Adarsh Society alone, 35 flats are found to be allegedly owned in benami names.
Highlighting the tighter provisions, sources said, the enactment will empower designated government authorities to confiscate benami properties and unlike the 1988 law the onus of proving that the property, in dispute is not benami, would rest on the ghost owner and not on the government officials.
The finance minister prepared the bill, which it got vetted through the law ministry.
Sources said, though the present Act allows the government to “acquire” benami property, the absence of proper implementation machinery has failed it to act decisively on such transactions.
“Presently the burden of proving a particular transaction a benami is entirely with the government or the person, who makes the allegation,” they said. According to sources the new law provides for setting up of fast-track courts to deal with such cases.
“Appeal in the matters will lie with the respective high courts, which will have to be satisfied that a substantial question of law is involved before admitting the appeal,” they added.
The new Bill also has provisions to bar the owner or his legal heirs from giving any defence in respect of the benami property.