IndiaBenami Property Case: Now there will be no jail in the case...

Benami Property Case: Now there will be no jail in the case of benami property, SC has given a big decision

"We hold section 3(2) of the Benami Transactions (Prohibition) Act, 1988 as unconstitutional," a bench of Chief Justice NV Ramana and Justices CT Ravikumar and Hima Kohli said.

The Supreme Court (SC) on Tuesday struck down a provision of the Benami Transactions (Prohibition) Act of 1988. It is punishable with imprisonment ofup to three years or fine or both for those involved in ‘benami’ transactions. Meaning that now there will be no punishment of jail or fine in case of benami property transaction.

The top court has termed this provision as “unconstitutional” on the ground of being “clearly arbitrary”.

“We hold section 3(2) of the Benami Transactions (Prohibition) Act, 1988 as unconstitutional,” a bench of Chief Justice NV Ramana and Justices CT Ravikumar and Hima Kohli said.

Section 3 of the Act deals with the subject ‘Prohibition of benami transactions’ and its now repealed sub-section (2) says,”Whoever carries on benami transactions shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.””

The Central Government had appealed in this regard challenging a decision of the Calcutta High Court, on which the decision of the apex court came. In the decision of the Hoi Court, it was said that the amendments made in the year 2016 to the 1988 Act will be applicable with retrospective effect.

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