New Delhi, 23 August: The Supreme Court has repealed the law of three years imprisonment for Benami property. The provision of imprisonment for three years was in section 3(2) of the Benami Transactions (Prohibition) Act. A bench headed by Chief Justice NV Ramana also said that the right to confiscate the property would not be applicable retrospectively. That is, in old cases, action will not be taken under this law.
The Central Government had filed a petition in the Supreme Court against a decision of the Calcutta High Court. The High Court had said that the amendment in the Benami Transaction Act would not be applicable retrospectively. The power given to the government to confiscate property under this law cannot be applied retrospectively. This means that in old cases action cannot be taken under this law.
Benami property means the property which has been paid for by someone else and is in the name of another person. This property can also be purchased in the name of wife, children or any relative. This is done in order to avoid taxes.
