Today Bill was introduced in Lok Sabha to have control over benami property deals comprising provisions for confiscation of such property and imprisonment. To make better and stricter Benami transactions Finance Minister Pranab Mukheerjee has introduced the Benami Transactions (Prohibition) Bill 2011 and replace the old one Benami Transactions (Prohibition) Act 1988. As per the Statement of Objects and Reasons, the Bill has been brought to prohibit holding property in benami and restrict the right to recover or transfer such property.
This Bill would be the most helpful to provide a better way and procedure for seizing of property held by the benami without any compensation. The introduced bill comprises a restriction over benami deals by any person, except deals entered into in the name of spouse, brother, sister or any lineal ascendant or descendant.
The law is having deep description to deal with the definition of benami deals and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law.
According to the new proposed bill if anyone violating the norms would be jailed for not less than Six months, and it could be extended to two years and also have to pay heavy fine.