The Prohibition of Benami Property Transactions Act, 1988
Administered Ministry: Ministry of Finance / Department of Revenue
Section
Section 41 Distribution of business amongst Benches of Appellate Tribunal.
1[41. Distribution of business amongst Benches of Appellate Tribunal.--Where any Benches are constituted, the Chairperson may, from time to time, by notification, make provision as to the distribution of the business of the Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with by each Bench.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 42 Power of Chairperson of Appellate Tribunal to transfer cases.
1[42. Power of Chairperson of Appellate Tribunal to transfer cases.--On the application of any of the parties and notice to the parties, and after hearing them, or on his own motion without any notice, the Chairperson of the Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 43 Decision to be by majority.
1[43. Decision to be by majority.--If the Members of a Bench consisting of two Members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing on the point or points by one or more of the other Members and the point or points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case, including those who first heard it.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 44 Members, etc., to be public servants.
1[44. Members, etc., to be public servants.--The Chairperson, Members and other officers and employees of the Appellate Tribunal, the Adjudicating Authority, Approving Authority, Initiating Officer, Administrator and the officers subordinate to all of them shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 45 Bar of jurisdiction of civil courts.
1[45. Bar of jurisdiction of civil courts--No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which any of the authorities, an Adjudicating Authority or the Appellate Tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other forum in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 46 Appeals to Appellate Tribunal.
(1) Any person, including the Initiating Officer, aggrieved by an order of the Adjudicating Authority may prefer an appeal in such form and along with such fees, as may be prescribed, to the Appellate Tribunal against the order passed by the Adjudicating Authority under sub-section (3) of section 26, within a period of forty-five days from the date 1[on which such order is received by the Initiating Officer or received by such person.]
2[(1A) Any person aggrieved by an order passed by the authority under section 54A may prefer an appeal in such form along with such fees, as may be prescribed, to the Appellate Tribunal against the said order within a period of forty-five days from the date 3[on which such order is received by such person.]
(2) The Appellate Tribunal may entertain any appeal after the said period of forty-five days, if it is satisfied that the appellant was prevented, by sufficient cause, from filing the appeal in time.
(3) On receipt of an appeal under sub-section (1), 4[or sub-section (1A)] the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit.
(4) An Appellate Tribunal while deciding the appeal shall have the power--
(a) to determine a case finally, where the evidence on record issufficient;
(b) to take additional evidence or to require any evidence to be taken by the Adjudicating Authority, where the Adjudicating Authority has refused to admit evidence, which ought to have been admitted;
(c) to require any document to be produced or any witness to be examined for the purposes of proceeding before it;
(d) to frame issues which appear to the Appellate Tribunal essential for adjudication of the case and refer them to the Adjudicating Authority for determination;
(e) to pass final order and affirm, vary or reverse an order of adjudication passed by the Adjudicating Authority and pass such other order or orders as may be necessary to meet the ends of justice.
(5) The Appellate Tribunal, as far as possible, may hear and finally decide the appeal within a period of one year from the last date of the month in which the appeal isfiled.
2[(1A) Any person aggrieved by an order passed by the authority under section 54A may prefer an appeal in such form along with such fees, as may be prescribed, to the Appellate Tribunal against the said order within a period of forty-five days from the date 3[on which such order is received by such person.]
(2) The Appellate Tribunal may entertain any appeal after the said period of forty-five days, if it is satisfied that the appellant was prevented, by sufficient cause, from filing the appeal in time.
(3) On receipt of an appeal under sub-section (1), 4[or sub-section (1A)] the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit.
(4) An Appellate Tribunal while deciding the appeal shall have the power--
(a) to determine a case finally, where the evidence on record issufficient;
(b) to take additional evidence or to require any evidence to be taken by the Adjudicating Authority, where the Adjudicating Authority has refused to admit evidence, which ought to have been admitted;
(c) to require any document to be produced or any witness to be examined for the purposes of proceeding before it;
(d) to frame issues which appear to the Appellate Tribunal essential for adjudication of the case and refer them to the Adjudicating Authority for determination;
(e) to pass final order and affirm, vary or reverse an order of adjudication passed by the Adjudicating Authority and pass such other order or orders as may be necessary to meet the ends of justice.
(5) The Appellate Tribunal, as far as possible, may hear and finally decide the appeal within a period of one year from the last date of the month in which the appeal isfiled.
1. Subs. by Act 8 of 2023, s. 171, for "of the order" (w.e.f. 1-4-2023).
2. Ins. by Act 23 of 2019, s. 177 (w.e.f. 1-9-2019).
3. Subs. by Act 8 of 2023, s. 171, for "of that order" (w.e.f. 1-4-2023).
4. Subs. by Act 23 of 2019, s.178, for sub-section (1) (w.e.f. 1-9-2019).
2. Ins. by Act 23 of 2019, s. 177 (w.e.f. 1-9-2019).
3. Subs. by Act 8 of 2023, s. 171, for "of that order" (w.e.f. 1-4-2023).
4. Subs. by Act 23 of 2019, s.178, for sub-section (1) (w.e.f. 1-9-2019).
Section 47 Rectification of mistakes.
1[(1) The Appellate Tribunal or any authority may, in order to rectify any mistake apparent on the face of the record, amend any order passed by it under the provisions of this Act, within a period of one year from the end of the month in which such order was passed.]
(2) No amendment shall be made under sub-section (1), if the amendment is likely to affect any person prejudicially, unless he has been given notice of intention to do so and has been given an opportunity of being heard.
(2) No amendment shall be made under sub-section (1), if the amendment is likely to affect any person prejudicially, unless he has been given notice of intention to do so and has been given an opportunity of being heard.
1. Subs. by s.178, ibid., for sub-section (1) (w.e.f. 1-9-2019)
Section 48 Right to representation.
1[48. Right to representation.--(1) A person preferring an appeal to the Appellate Tribunal under this Act may either appear in person or take the assistance of an authorised representative of his choice to present his case before the Appellate Tribunal.
(2) The Central Government may authorise one or more of its officers to act as presenting officers on its behalf, and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal.
Explanation.--For the purposes of this section, "authorised representative" means a person authorised by the appellant in writing to appear on his behalf, being--
(i) a person related to the appellant in any manner, or a person regularly employed by the appellant; or
(ii) any officer of a scheduled bank with which the appellant maintains an account or has other regular dealings; or
(iii) any legal practitioner who is entitled to practice in any civil court in India; or
(iv) any person who has passed any accountancy examination recognised in this behalf by the Board; or
(v) any person who has acquired such educational qualifications as the Board may prescribe for this purpose.]
(2) The Central Government may authorise one or more of its officers to act as presenting officers on its behalf, and every person so authorised may present the case with respect to any appeal before the Appellate Tribunal.
Explanation.--For the purposes of this section, "authorised representative" means a person authorised by the appellant in writing to appear on his behalf, being--
(i) a person related to the appellant in any manner, or a person regularly employed by the appellant; or
(ii) any officer of a scheduled bank with which the appellant maintains an account or has other regular dealings; or
(iii) any legal practitioner who is entitled to practice in any civil court in India; or
(iv) any person who has passed any accountancy examination recognised in this behalf by the Board; or
(v) any person who has acquired such educational qualifications as the Board may prescribe for this purpose.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 49 Appeal to High Court.
1[49. Appeal to High Court.--(1) Any party aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the High Court within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any question of law arising out of such order.
(2) The High Court may entertain any appeal after the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the period specified in sub-section (1).
(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
(4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question.
(5) Nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(6) The High Court shall decide the question of law so formulated and deliver the judgment thereon containing the grounds on which any decision is founded and may award any cost as it deems fit.
(7) The High Court may determine any issue which--
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1).
(8) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.]
(2) The High Court may entertain any appeal after the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within the period specified in sub-section (1).
(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
(4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question.
(5) Nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
(6) The High Court shall decide the question of law so formulated and deliver the judgment thereon containing the grounds on which any decision is founded and may award any cost as it deems fit.
(7) The High Court may determine any issue which--
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1).
(8) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 50 Special Courts.
1[50. Special Courts.--(1) The Central Government, in consultation with the Chief Justice of the High Court, shall, for trial of an offence punishable under this Act, by notification, designate one or more Courts of Session as Special Court or Special Courts for such area or areas or for such case or class or group of cases as may be specified in the notification.
(2) While trying an offence under this Act, a Special Court shall also try an offence other than an offence referred to in sub-section (1), with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial.
(3) The Special Court shall not take cognizance of any offence punishable under this Act except upon a complaint in writing made by--
(i) the authority; or
(ii) any officer of the Central Government or State Government authorised in writing by that Government by a general or special order made in this behalf.
(4) Every trial under this section shall be conducted as expeditiously as possible and every endeavour shall be made by the Special Court to conclude the trial within six months from the date of filing of the complaint.]
(2) While trying an offence under this Act, a Special Court shall also try an offence other than an offence referred to in sub-section (1), with which the accused may, under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same trial.
(3) The Special Court shall not take cognizance of any offence punishable under this Act except upon a complaint in writing made by--
(i) the authority; or
(ii) any officer of the Central Government or State Government authorised in writing by that Government by a general or special order made in this behalf.
(4) Every trial under this section shall be conducted as expeditiously as possible and every endeavour shall be made by the Special Court to conclude the trial within six months from the date of filing of the complaint.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 51 Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.
1[51. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court.--(1) Save as otherwise provided in this Act, the provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall apply to the proceedings before a Special Court and the persons conducting the prosecution before the Special Court, shall be deemed to be Public Prosecutors:
Provided that the Central Government may also appoint for any case or class or group of cases, a Special Public Prosecutor.
(2) A person shall not be qualified to be appointed as a Public Prosecutor or a Special Public Prosecutor under this section unless, the Public Prosecutor has been in practice as an advocate for not less than seven years, and the Special Public Prosecutor has been in practice as an advocate for not less than ten years in any court.
(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this section shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly.]
Provided that the Central Government may also appoint for any case or class or group of cases, a Special Public Prosecutor.
(2) A person shall not be qualified to be appointed as a Public Prosecutor or a Special Public Prosecutor under this section unless, the Public Prosecutor has been in practice as an advocate for not less than seven years, and the Special Public Prosecutor has been in practice as an advocate for not less than ten years in any court.
(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this section shall be deemed to be a Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974) and the provisions of that Code shall have effect accordingly.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 52 Appeal and revision.
1[52. Appeal and revision.--The High Court may exercise, so far as may be applicable, all the powers conferred by Chapter XXIX or Chapter XXX of the Code of Criminal Procedure, 1973 (2 of 1974), on a High Court, as if a Special Court within the local limits of the jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 53 Penalty for benami transaction.
1[53. Penalty for benami transaction.--(1) Where any person enters into a benami transaction in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into the benami transaction, shall be guilty of the offence of benami transaction.
(2) Whoever is found guilty of the offence of benami transaction referred to in sub-section (1) shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five per cent. of the fair market value of the property.]
(2) Whoever is found guilty of the offence of benami transaction referred to in sub-section (1) shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five per cent. of the fair market value of the property.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 54 Penalty for false information.
1[54. Penalty for false information.--Any person who is required to furnish information under this Act knowingly gives false information to any authority or furnishes any false document in any proceeding under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which may extend to ten per cent. of the fair market value of the property.]
1. Ins. by s. 9, ibid. (w.e.f. 1-11-2016).
Section 54A Penalty for failure to comply with notices or furnish information
1[54A. Penalty for failure to comply with notices or furnish information.--(1) Any person who fails to, --
(i) comply with summons issued under sub-section (1) of section 19; or
(ii) furnish information as required under section 21, shall be liable to pay penalty of twenty-five thousand rupees for each such failure.
(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the summons or called for the information.
(3) No order under sub-section (2) shall be passed by the authority unless the person on whom the penalty is to be imposed has been given an opportunity of being heard:
Provided that no penalty shall be imposed if, such person proves that there were good and sufficient reasons which prevented him from complying with the summons or furnishing information.]
(i) comply with summons issued under sub-section (1) of section 19; or
(ii) furnish information as required under section 21, shall be liable to pay penalty of twenty-five thousand rupees for each such failure.
(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the summons or called for the information.
(3) No order under sub-section (2) shall be passed by the authority unless the person on whom the penalty is to be imposed has been given an opportunity of being heard:
Provided that no penalty shall be imposed if, such person proves that there were good and sufficient reasons which prevented him from complying with the summons or furnishing information.]
1. Ins. by Act 23 of 2019, s. 179 (w.e.f. 1-9-2019).
Section 54B Proof of entries in records or documents.
1[54B. Proof of entries in records or documents.--The entries in the records or other documents in the custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under section 3 or this Chapter, as the case may be, and all such entries may be proved either by--
(i) the production of the records or other documents in the custody of the authority containing such entries; or
(ii) the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.]
(i) the production of the records or other documents in the custody of the authority containing such entries; or
(ii) the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.]
1. Ins. by Act 23 of 2019, s. 179 (w.e.f. 1-9-2019)
Section 55 Previous sanction.
No prosecution shall be instituted against any person in respect of any offence under sections 3, 53 or section 54 without the previous sanction of the 1[competent authority].]
2[Explanation.--For the purposes of this section, "competent authority" means a Commissioner, a Director, a Principal Commissioner of Income-tax or a Principal Director of Income-tax as defined in clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 1961 (43 of 1961).]
2[Explanation.--For the purposes of this section, "competent authority" means a Commissioner, a Director, a Principal Commissioner of Income-tax or a Principal Director of Income-tax as defined in clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 1961 (43 of 1961).]
1. Subs. by Act 23 of 2019, s. 180, for "Board" (w.e.f. 1-9-2019).
2. Ins. by s. 180, ibid. (w.e.f. 1-9-2019).
2. Ins. by s. 180, ibid. (w.e.f. 1-9-2019).
Section 55A Power to tender Immunity from prosecution.
1[55A. Power to tender Immunity from prosecution.--(1) The Initiating Officer may, with a view to obtaining the evidence of the benamidar or any other person as referred to in section 53, other than the beneficial owner, tender immunity from prosecution for any offence under the said section to the benamidar or such other person, with the previous sanction of the competent authority as referred to in section 55, on the condition that the benamidar or such other person makes a full and true disclosure of the whole circumstances relating to the benami transaction.
(2) The tender of immunity made to, and accepted by, the benamidar or such other person, shall, to the extent to which the immunity extends, render him immune from prosecution for the offence in respect of which the tender was made and from the imposition of any penalty under section 53.
(3) If it appears to the Initiating Officer that any person to whom immunity has been tendered under this section has not complied with the conditions subject to which the tender was made, or is wilfully concealing anything, or is giving false evidence, the Initiating Officer may record a finding to that effect, and with the previous sanction of the competent authority as referred to in section 55, withdraw the immunity tendered.
(4) Any person against whom the immunity tendered is withdrawn in accordance with sub-section (3), may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have committed in connection with the same transaction and shall also be liable to any penalty under this Act to which he would otherwise have been liable.]
(2) The tender of immunity made to, and accepted by, the benamidar or such other person, shall, to the extent to which the immunity extends, render him immune from prosecution for the offence in respect of which the tender was made and from the imposition of any penalty under section 53.
(3) If it appears to the Initiating Officer that any person to whom immunity has been tendered under this section has not complied with the conditions subject to which the tender was made, or is wilfully concealing anything, or is giving false evidence, the Initiating Officer may record a finding to that effect, and with the previous sanction of the competent authority as referred to in section 55, withdraw the immunity tendered.
(4) Any person against whom the immunity tendered is withdrawn in accordance with sub-section (3), may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have committed in connection with the same transaction and shall also be liable to any penalty under this Act to which he would otherwise have been liable.]
1. Ins. by Act 15 of 2024, s. 158 (w.e.f. 1-10-2024).
Section 56 Repeal of provisions of certain Acts.
1[56. Repeal of provisions of certain Acts.--(1) Sections 81, 82 and 94 of the Indian Trusts Act, 1882 (2 of 1882), section 66 of the Code of Civil Procedure, 1908 (5 of 1908) and section 281A of the Income-tax Act, 1961 (43 of 1961), are hereby repealed.
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall affect the continued operation of section 281A of the Income-tax Act, 1961 (43 of 1961) in the State of Jammu and Kashmir.]
(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall affect the continued operation of section 281A of the Income-tax Act, 1961 (43 of 1961) in the State of Jammu and Kashmir.]
1. Subs. by Act 43 of 2016, s. 10, for sections 7 and 8 (w.e.f. 1-11-2016).
Section 57 Certain transfers to be null and void.
1[57. Certain transfers to be null and void.--Notwithstanding anything contained in the Transfer of the Property Act, 1882 (4 of 1882) or any other law for the time being in force, where, after the issue of a notice under section 24, any property referred to in the said notice is transferred by any mode whatsoever, the transfer shall, for the purposes of the proceedings under this Act, be ignored and if the property is subsequently confiscated by the Central Government under section 27, then, the transfer of the property shall be deemed to be null and void.]
1. Subs. by Act 43 of 2016, s. 10, for sections 7 and 8 (w.e.f. 1-11-2016).