The Supreme Court has ruled that Section 3(2) of the Benami Transactions (Prohibition) Act, 1988 is unconstitutional as it is manifestly arbitrary. It further said that the Benami Transactions (Prohibition) Amendment Act, 2016 can be applied only prospectively and not retrospectively.
What is a ‘benami transaction’?
Benami literally means ‘without a name’. Therefore, an asset without a legal owner or a fictitious owner is called benami. It can be a property of any kind, whether movable or immovable, acquired by way of benami transaction.
Benami Transaction (Prohibition) Act, 1988 –
Benami Transactions (Prohibition) Amendment Act 2016 –
Key highlights of the Judgement –
Article 20(1) of the Constitution –