Budget 2024-25: Amendments to the Prohibition of Benami Property Transactions Act, 1988

Last updated: 24 July 2024

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Quick Summary

The UK government has introduced amendments to the Prohibition of Benami Property Transactions Act, 1988, effective from 1st October 2024. These changes aim to streamline the process of dealing with benami properties by introducing stricter time limits for benamidars and beneficial owners to respond to notices, and for initiating officers to attach property. Additionally, a new section allows for immunity to be offered to benamidars (excluding beneficial owners) who cooperate with investigations, encouraging them to provide evidence against beneficial owners.

(A) Amendment of Section 24 of the Prohibition of Benami Property Transactions Act, 1988 Section 24 of the Prohibition of Benami Property Transactions (PBPT) Act, 1988 relates to notice and attachment of property involved in Benami transaction. 2. The existing provisions of sub-section (3) of the said section 24 of PBPT Act do not provide for any time limit for a benamidar to furnish a reply to the notice issued under sub-section (1) or beneficial owner to file submissions on copy of said noti

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FAQ :

The amendments introduce new time limits for responding to notices and attaching properties, and allow for immunity to be offered to benamidars who assist in investigations.

These amendments will take effect from the 1st day of October, 2024.

Benamidars or beneficial owners will have a maximum of three months from the end of the notice month to file explanations. The period for the Initiating Officer to provisionally attach property or decide on attachment is increased to four months from the end of the notice month. The time to draw up a statement of the case and refer it to the Adjudicating Authority is increased to one month from the end of the month the order was passed.

Yes, the Initiating Officer can offer immunity from penalty to a benamidar (but not the beneficial owner) in exchange for full disclosure about the benami transaction, with the sanction of the competent authority.

If the benamidar fails to comply with the conditions of the immunity, conceals information, or gives false evidence, the immunity can be withdrawn, and they may face prosecution and penalties.

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