Q. With reference to Benami Property Transactions, consider the following statements;
All the provisions of Benami Property Transactions Act can apply retrospectively.
The subject matter of a benami transaction shall be liable to be confiscated by the Central Government.
Which of the statements given above is/are correct?
Answer: B
Notes:
Statement 1 is incorrect: In 2019, the Calcutta High Court ruled that the Benami Transactions (Prohibition) Amendment Act, 2016 cannot be applied retrospectively. The Central government then appealed to the Supreme Court against this judgement.
Recently, the Supreme Court has struck down two vital provisions of the Prohibition of Benami Property Transactions Act, 1988 which were introduced in the Benami law in 2016.
Statement 2 is correct: The subject matter of a benami transaction shall be liable to be confiscated by the Central Government.
Source: The Hindu
