UPSC Previous Year Question | Prelims GS | 2017

With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements: 1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction. 2. Properties held benami are liable for confiscation by the Government. 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. 1 and 3 only
  4. 2 and 3 only

Answer

Correct Answer

2 only

Explanation

A transaction where the owner is unaware is precisely the definition of a benami transaction (statement 1 wrong). Benami properties are liable for confiscation without compensation (statement 2 correct). The amended Act (2016) provides four authorities and also an appellate mechanism (Adjudicating Authority and Appellate Tribunal), so statement 3 is wrong.

Topics: anti-corruption and financial laws, benami transactions act, pbpt act provisions, polity and governance