Tribunal to fasttrack benami cases gets cabinet approval
Cabinet approves setting up an adjudicating authority and an appellate tribunal
NEWDELHI: Cases related to benami transactions may be resolved quicker in the future with the Union cabinet on Wednesday approving the creation of two bodies—an adjudicating authority and an appellate tribunal.
The approval is expected to lead to effective and better administration of cases referred to the adjudicating authority and speedy disposal of appeals filed against the order of the authority before the appellate tribunal.
A benami transaction is one where a property is held in one person’s name, but the funds for acquisition have been provided by another person, for whose benefit the property is held. Therefore, the property is not held in the name of the real owner, but in somebody else’s name.
Benami transactions are usually undertaken by people who want to park their unaccounted cash in real estate, in order to dodge tax authorities.
In July this year, the finance ministry informed the Rajya Sabha that provisional attachment has been made in more than 1,600 cases of properties under the Benami Transactions (Prohibition) Act, 1988.
These include plots of land, flats, shops, vehicles, deposits in bank accounts, fixed deposits, etc. “The value of properties under attachment is more than ₹4,300 crore including immovable properties of more than