Consider the following statements regarding Benami Transactions Prohibition Amendment act 2016 1 nbs...........

Indian Polity Legal Issues

Consider the following statements regarding Benami Transactions(Prohibition) Amendment act, 2016:

1. The person found guilty may have to face rigorous imprisonment for a period not less than 1 year & which may be extended to maximum of 7 years.

2. There would be a penalty of 50 percent which will be calculated on the fair market value of the property.

3. Properties held benami are liable for confiscation by government without compensation.

Select the correct answer using the code given below.

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

Highlights of Key Provisions of Benami Transactions (Prohibition) Amendment Act, 2016

The person found guilty may have to face rigorous imprisonment for a period not less than 1 year & which may be extended to maximum of 7 years. In addition to imprisonment, there would be a penalty of 25 percent which will be calculated on the fair market value of the property.
Any person who is asked to furnish any information under this act, if intentionally provides false information shall face rigorous imprisonment of not less than 6 months which may extend up to 5 years along with the fine of 10 percent of the fair market value of the property.
Properties held benami are liable for confiscation by government without compensation.
Initiating Officer may pass an order to continue holding property and may then refer case to Adjudicating Authority which will then examine evidence and pass an order.
Appellate Tribunal will hear appeals against orders of Adjudicating Authority.
High Court can hear appeals against orders of Appellate Tribunal.