1911

Panaji, 16th February, 2017 (Magha 27, 1938)

SERIES I No. 46

Reg. No. G-2/RNP/GOA/32/2015-2017

RNI No. GOAENG/2002/6410

PUBLISHED BY AUTHORITY

GOVERNMENT OF GOA

Department of Law & Judiciary

Legal Affairs Division

—

Notification

10/4/2016-LA

The Benami Transactions (Prohibition)

Amendment Act, 2016 (Central Act No. 43 of

2016), which has been passed by Parliament

and assented to by the President on

10-08-2016 and published in the Gazette of

India, Extraordinary, Part II, Section 1, dated

11-08-2016, is hereby published for the

general information of the public.

Julio Barbosa Noronha, Under Secretary

(Law).

Porvorim, 4th November, 2016.

_________

THE BENAMI TRANSACTIONS

(PROHIBITION), AMENDMENT

ACT, 2016

ACT

further to amend the Benami Transactions

(Prohibition) Act, 1988.

Suggestions are welcomed on e-mail: dir–[email protected]

Be it enacted by Parliament in the Sixty-

-seventh Year of the Republic of India as

follows:—

1. Short title and commencement.— (1) This

Act may be called the Benami Transactions

(Prohibition) Amendment Act, 2016.

(2) It shall come into force on such date as

the Central Government may, by notification

in the Official Gazette, appoint, and different

dates may be appointed for different

provisions of this Act and any reference in

any such provision to the commencement of

this Act shall be construed as a reference to

the coming into force of that provision.

2. Insertion of new heading

before section 1.— In the Benami

Transactions (Prohibition) Act, 1988

(hereinafter referred to as the

principal Act), before section 1, the

following heading shall be inserted,

namely:—

“CHAPTER I

Preliminary.”

3. Amendment of section 1.— In section 1

of the principal Act, for sub-section (1), the

following sub-section shall be substituted,

namely:—

45 of 1988.

Department Notification Subject

Pages

1. Law & Judiciary

Not.- 10/4/2016-LA

The Benami Transactions (Prohibition) Amendment

1911

Under Secretary

Act, 2016.

INDEX

OFFICIAL GAZETTE — GOVT. OF GOA

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16TH FEBRUARY, 2017

1912

“(1) This Act may be called the

Prohibition of Benami Property

Transactions Act, 1988.”.

4. Substitution of new section for section

2.— For section 2 of the principal Act, the

following section shall be substituted,

namely:—

‘2. Definitions.— In this Act, unless the

context otherwise requires,—

(1) “Adjudicating Authority” means

the Adjudicating Authority appointed

under section 7;

(2) “Administrator” means

an Income-tax Officer as

defined in clause (25) of section

2 of the Income-tax Act, 1961;

(3) “Appellate Tribunal” means the

Appellate Tribunal established under

section 30;

(4) “Approving Authority”

means an Additional Commi-

ssioner or a Joint Commissioner

as defined in clauses (1C) and

(28C) respectively of section 2

of the Income-tax Act, 1961;

(5) “attachment” means the prohibi-

tion of transfer, conversion, disposition

or movement of property, by an order

issued under this Act;

(6) “authority” means an authority

referred to in sub-section (1) of section 18;

(7) “banking company”

means a company to which the

provisions of the Banking

Regulation Act, 1949, applies

and includes any bank or

banking institution referred to

in section 51 of that Act;

(8) “benami property” means any

property which is the subject matter of

a benami transaction and also includes

the proceeds from such property;

(9) “benami transaction” means,—

(A) a transaction or an arrange-

ment—

(a)

where

property

transferred to, or is held by, a

person, and the consideration for

such property has been provided,

or paid by, another person; and

(b) the property is held for the

immediate or future benefit, direct

or indirect, of the person who has

provided the consideration,

except when the property is held

by—

(i) a Karta, or a member of a Hindu

undivided family, as the case may be,

and the property is held for his benefit

or benefit of other members in the

family and the consideration for such

property has been provided or paid

out of the known sources of the Hindu

undivided family;

(ii) a person standing in a

fiduciary capacity for the

benefit of another person

towards whom he stands in

such capacity and includes

a trustee, executor, partner,

director of a company, a

depository or a participant

as an agent of a depository

under the Depositories Act,

1996 and any other person

as may be notified by the

Central Government for this

purpose;

(iii) any person being an individual

in the name of his spouse or in the

name of any child of such individual

and the consideration for such

property has been provided or paid

out of the known sources of the

individual:

(iv) any person in the name of his

brother or sister or lineal ascendant

45 of 1988.

43 of 1961.

10 of 1949.

22 of 1996.

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16TH FEBRUARY, 2017

1913

or descendant, where the names of

brother or sister or lineal ascendant

or descendant and the individual

appear as joint-owners in any

document, and the consideration for

such property has been provided or

paid out of the known sources of the

individual; or

(B) a transaction or an arrangement

in respect of a property carried out or

made in a fictitious name; or

in respect of a property where the

owner of the property is not aware of,

or, denies knowledge of, such

ownership;

(D) a transaction or an arrangement

in respect of a property where the

person providing the consideration is

not traceable or is fictitious;

Explanation.—

For

the

removal of doubts, it is hereby

declared that benami tran-

saction shall not include any

transaction

involving

the

allowing of possession of any

property to be taken or retained

in part performance of a

contract referred to in section

53A of the Transfer of Property

Act, 1882, if, under any law for

the time being in force,—

(i) consideration for such property

has been provided by the person to

whom possession of property has

been allowed but the person who has

granted possession thereof continues

to hold ownership of such property;

(ii) stamp duty on such transaction

or arrangement has been paid; and

(iii)

the

contract

has

been

registered.

(10) “benamidar” means a person or

a fictitious person, as the case may be,

in whose name the benami property is

transferred or held and includes a

person who lends his name;

(11) “Bench” means a Bench of the

Adjudicating Authority or the Appellate

Tribunal, as the case may be;

(12) “beneficial owner” means a

person, whether his identity is known

or not, for whose benefit the benami

property is held by a benamidar;

(13) “Board” means the

Central Board of Direct Taxes

constituted under the Central

Boards of Revenue Act, 1963;

(14) “director” shall have the

same meaning as assigned to

it in clause (34) of section 2 of

the Companies Act, 2013;

(15) “executor” shall have

the same meaning as assigned

to it in clause (c) of section 2 of

the Indian Succession Act,

1925;

(16) “fair market value”, in

relation to a property, means—

(i) the price that the property would

ordinarily fetch on sale in the open

market on the date of the transaction;

and

(ii) where the price referred to in

sub-clause (i) is not ascertainable,

such price as may be determined in

accordance with such manner as may

be prescribed;

(17) “firm” shall have the

same meaning as assigned to

it in section 4 of the Indian

Partnership Act, 1932 and shall

include a limited liability

partnership as defined in the

Limited Liability Partnership

Act, 2008;

4 of 1882.

54 of 1963.

18 of 2013.

39 of 1925.

9 of 1932.

6 of 2009.

OFFICIAL GAZETTE — GOVT. OF GOA

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1914

(18) “High Court” means—

(i) the High Court within the

jurisdiction of which the aggrieved

party ordinarily resides or carries on

business or personally works for gain;

and

(ii) where the Government is the

aggrieved party, the High Court

within the jurisdiction of which the

respondent, or in a case where there

are more than one respondent, any of

the respondents, ordinarily resides or

carries on business or personally

works for gain;

(19) “Initiating Officer”

means

Assistant

Commissioner or a Deputy

Commissioner as defined in

clauses

(9A)

and

(19A)

respectively of section 2 of the

Income-tax Act, 1961;

(20) “Member” means the Chair-

person

the

Member

the

Adjudicating Authority or the Appellate

Tribunal, as the case may be;

(21) “notification” means a notification

published in the Official Gazette and the

expression “notified” shall be construed

accordingly;

(22) “partner” shall have the

same meaning as assigned to

it in section 4 of the Indian

Partnership Act, 1932, and

shall include,—

(a) any person who, being a minor,

has been admitted to the benefits of

partnership; and

(b) a partner of a limited

liability partnership formed

and registered under the

Limited Liability Partnership

Act, 2008;

(23) “partnership” shall have

the same meaning as assigned

to it in section 4 of the Indian

Partnership Act, 1932, and

shall include a limited liability

partnership

formed

and

registered under the Limited

Liability Partnership Act, 2008;

(24) “person” shall include—

(i) an individual;

(ii) a Hindu undivided family;

(iii) a company;

(iv) a firm;

(v) an association of persons

or a body of individuals, whether

incorporated or not;

(vi) every artificial juridical person,

not falling under sub-clauses (i) to (v);

(25) “prescribed” means prescribed

by rules made under this Act;

(26) “property” means assets of any

kind, whether movable or immovable,

tangible or intangible, corporeal or

incorporeal and includes any right or

interest

legal

documents

instruments evidencing title to or interest

in the property and where the property

is capable of conversion into some other

form, then the property in the converted

form and also includes the proceeds from

the property;

(27)

“public

financial

institution” shall have the same

meaning as assigned to it in

clause (72) of section 2 of the

Companies Act, 2013;

(28) “Special Court” means a Court of

Session designated as Special Court

under sub-section (1) of section 50;

(29)

“transfer”

includes

sale,

purchase or any other form of transfer

of right, title, possession or lien;

(30) “trustee” means the

trustee as defined in the section

3 of the Indian Trusts Act, 1882;

43 of 1961.

9 of 1932.

6 of 2009.

9 of 1932.

6 of 2009.

18 of 2013.

2 of 1882.

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1915

(31) words and expressions

used herein and not defined

in this Act but defined in the

Indian Trusts Act, 1882,

the Indian Succession Act,

1925, the Indian Partnership

Act, 1932, the Income-tax Act,

1961, the Depositories Act,

1996, the Prevention of Money-

-Laundering Act, 2002, the

Limited Liability Partnership

Act, 2008 and the Companies

Act, 2013, shall have the

same meanings respectively

assigned to them in those

Acts.’.

5. Insertion of new heading before section

3.— Before section 3 of the principal Act, the

following heading shall be inserted,

namely:—

“CHAPTER II

Prohibition of Benami Transactions”

6. Amendment of section 3.— In section 3

of the principal Act,—

(a) sub-section (2) shall be omitted;

(b) sub-section (3) shall be renumbered

as sub-section (2) thereof;

(c)

after

sub-section

(2)

renumbered, the following sub-section

shall be inserted, namely:—

“(3) Whoever enters into any benami

transaction on and after the date of

commencement

the

Benami

Transactions (Prohibition) Amendment

Act, 2016, shall, notwithstanding

anything contained in sub-section (2),

be punishable in accordance with the

provisions contained in Chapter VII.”;

(d) sub-section (4) shall be omitted.

7. Amendment of section 4.— In section 4

of the principal Act, sub-section (3) shall be

omitted.

8. Substitution of new sections for sections

5 and 6.— For sections 5 and 6 of the

principal Act, the following sections shall be

substituted, namely:—

“5. Property held benami liable to

confiscation.— Any property, which is

subject matter of benami transaction, shall

be liable to be confiscated by the Central

Government.

6. Prohibition on re-transfer of property

by benamidar.— (1) No person, being a

benamidar shall re-transfer the benami

property held by him to the beneficial

owner or any other person acting on his

behalf.

(2) Where any property is re-transferred

in contravention of the provisions of sub-

-section (1), the transaction of such

property shall be deemed to be null and

void.

(3) The provisions of sub-

-sections (1) and (2) shall not

apply to a transfer made in

accordance with the provisions of

section 190 of the Finance Act,

2016.”.

9. Insertion of new Chapters III to VII.—

After section 6 of the principal Act, the

following shall be inserted, namely:—

‘CHAPTER III

Authorities

7. Adjudicating Authority.— The Central

Government shall, by notification, appoint

one or more Adjudicating Authorities to

exercise jurisdiction, powers and authority

conferred by or under this Act.

8. Composition of Authority.— An

Adjudicating Authority shall consist of a

Chairperson and at least two other

Members.

9. Qualifications for appointment of

Chairperson and Members.— (1) A person

snail not be qualified for appointment as

the Chairperson or a Member of the

Adjudicating Authority unless he,—

2 of 1882.

39 of 1925.

9 of 1932.

43 of 1961.

22 of 1996.

15 of 2003.

6 of 2009.

18 of 2013.

28 of 2016.

OFFICIAL GAZETTE — GOVT. OF GOA

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1916

(a) has been a member of the Indian

Revenue Service and has held the post

of Commissioner of Income-tax or

equivalent post in that Service; or

(b) has been a member of the Indian

Legal Service and has held the post of

Joint Secretary or equivalent post in that

Service.

(2) The Chairperson and other Members

of the Adjudicating Authority shall be

appointed by the Central Government in

such manner as may be prescribed.

(3) The Central Government shall appoint

the seniormost Member to be the

Chairperson of the Adjudicating Authority.

10.

Constitution

Benches

Adjudicating Authority.— (1) Subject to

the provisions of this Act,—

(a) the jurisdiction of the Adjudicating

Authority may be exercised by Benches

thereof;

(b) a Bench may be constituted by

the Chairperson of the Adjudicating

Authority with two Members, as the

Chairperson may deem fit;

Authority shall ordinarily sit in the

National Capital Territory of Delhi and

at such other places as the Central

Government may, in consultation with

the Chairperson, by notification, specify;

(d) the Central Government shall, by

notification, specify the areas in relation

to which each Bench of the Adjudicating

Authority may exercise jurisdiction.

(2) Notwithstanding anything contained

in sub-section (1), the Chairperson may

transfer a Member from one Bench to

another Bench.

11. Power of Adjudicating

Authority to regulate its own

procedure.— The Adjudicating

Authority shall not be bound by

the procedure laid down by the

Code of Civil Procedure, 1908, but

shall be guided by the principles

of natural justice and, subject to

the other provisions of this Act,

the Authority shall have powers

to regulate its own procedure.

12. Term of office of Chairperson and

Members of Adjudicating Authority.— The

Chairperson

and

Members

the

Adjudicating Authority shall hold office for

a term not exceeding five years from the

date on which they enter upon their office,

or until they attain the age of sixty-two

years, whichever is earlier and shall not

be eligible for reappointment.

13. Terms and conditions of services of

Chairperson and Members of Adjudicating

Authority.— (1) The salary and allowances

payable to, and the other terms and

conditions of service of the Chairperson

and other Members of the Adjudicating

Authority shall be such as may be

prescribed.

(2) Any vacancy caused to the office of

the Chairperson or any other Member shall

be filled up within a period of three months

from the date on which such vacancy

occurs.

14. Removal of Chairperson and Members

of Adjudicating Authority.— (1) The

Central Government may, by order, remove

from office, the Chairperson or other

Members of the Adjudicating Authority, if

the Chairperson or such other Member, as

the case may be,—

(a) has been adjudged as an insolvent;

(b) has been convicted of an offence,

involving moral turpitude; or

(e) has become physically or mentally

incapable of acting as a Member; or

(d) has acquired such financial or

other interest as is likely to affect

prejudicially his functions; or

5 of 1908.

OFFICIAL GAZETTE — GOVT. OF GOA

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1917

(e) has so abused his position as to

render his continuance in office is

prejudicial to the public interest.

(2) No Chairperson or Member shall be

removed from his office under clause (d)

or clause (e) of sub-section (1) unless he

has been given a reasonable opportunity

of being heard in the matter.

15. Member to act as Chairperson in

certain circumstances.— (1) In the event

of the occurrence of any vacancy in the

office of the Chairperson by reason of his

death, resignation or otherwise, the

seniormost Member shall act as the

Chairperson of the Adjudicating Authority

until the date on which a new Chairperson,

appointed in accordance with the

provisions of this Act to fill such vacancy,

enters upon his office.

(2) When the Chairperson is unable to

discharge his functions owing to absence,

illness or any other cause, the senior most

Member shall discharge the functions

of the Chairperson until the date on

which the Chairperson resumes his

duties.

16. Vacancies, etc., not to invalidate

proceedings of Adjudicating Authority.—

No act or proceeding of the Adjudicating

Authority shall be invalid merely by reason

of—

(a) any vacancy in, or any defect in

the constitution of the Authority; or

(b) any defect in the appointment of a

person acting as a Member of the

Authority; or

of the Authority not affecting the merits

of the case.

17.

Officers

and

employees

Adjudicating Authority.— (1) The Central

Government

shall

provide

each

Adjudicating Authority with such officers

and employees as that Government may

think fit.

(2) The officers and employees of the

Adjudicating Authority shall discharge

their functions under the general

superintendence of the Chairperson of the

Adjudicating Authority.

18. Authorities and jurisdiction.— (1) The

following shall be the authorities for the

purposes of this Act, namely:-

(a) the Initiating Officer;

(b) the Approving Authority;

(d) the Adjudicating Authority.

(2) The authorities shall exercise all or

any of the powers and perform all or any

of the functions conferred on, or, assigned,

as the case may be, to it under this Act or

in accordance with such rules as may be

prescribed.

19. Powers of authorities.— (1)

The authorities shall, for the

purposes of this Act, have the

same powers as are vested in a

civil court under the Code of Civil

Procedure, 1908, while trying a

suit in respect of the following

matters, namely:—

(a) discovery and inspection;

(b) enforcing the attendance of any

person, including any official of a

banking company or a public financial

institution or any other intermediary or

reporting entity, and examining him on

oath;

of account and other documents;

(d) issuing commissions;

(e) receiving evidence on affidavits;

and

(f) any other matter which may be

prescribed.

(2) All the persons summoned under

sub-section (1) shall be bound to attend in

5 of 1908.

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1918

person or through authorised agents, as

any authority under this Act may direct,

and shall be bound to state the truth upon

any subject respecting which they are

examined or make statements, and

produce such documents as may be

required.

(3) Every proceeding under

sub-section (1) or sub-section (2)

shall be deemed to be a judicial

proceeding within the meaning

of section 193 and section 228 of

the Indian Penal Code.

(4) For the purposes of this Act, any

authority under this Act may requisition

the service of any police officer or of any

officer of the Central Government or State

Government or of both to assist him for all

or any of the purposes specified in sub-

-section (1), and it shall be the duty of

every such officer to comply with the

requisition or direction.

(5) For the purposes of this section,

“reporting entity” means any intermediary

or any authority or of the Central or the

State Government or any other person as

may be notified in this behalf.

Explanation.—

For

the

purposes of sub-section (5),

“intermediary” shall have the

same meaning as assigned to it

in clause (n) of sub-section (1) of

section 2 of the Prevention of

Money-Laundering Act, 2002.

20. Certain officers to assist in inquiry,

etc.— The following officers shall assist the

authorities in the enforcement of this Act,

namely:—

(a) income-tax authorities

appointed under sub-section

(1) of section 117 of the Income-

-tax Act, 1961;

(b) officers of the Customs and Central

Excise Departments;

sub-section (1) of section 5 of

the

Narcotic

Drugs

and

Psychotropic Substances Act,

1985;

(d) officers of the stock

exchange recognised under

section 4 of the Securities

Contracts (Regulation) Act,

1956;

(e) officers of the Reserve

Bank of lndia constituted under

sub-section (1) of section 3 of

the Reserve Bank of India Act,

1934;

(f) police;

(g) officers of enforcement

appointed under sub-section

(1) of section 36 of the Foreign

Exchange Management Act,

1999;

(h) officers of the Securities

and Exchange Board of India

established under section 3 of

the Securities and Exchange

Board of lndiaAct, 1992;

(i) officers of any other body corporate

constituted or established under a

Central or a State Act; and

(j) such other officers of the Central

Government, State Government, local

authorities or banking companies as the

Central Government may, by notification,

specify, in this behalf.

21. Power to call for information.— (1)

The Initiating Officer or the Approving

Authority or the Adjudicating Authority

shall have power to require any officer of

the

Central

Government

State

Government or a local body or any person

or officer who is responsible for registering

and maintaining books of account or other

documents containing a record of any

transaction relating to any property or any

other person to furnish any information in

45 of 1860.

15 of 2003.

43 of 1961.

61 of 1985.

42 of 1956.

2 of 1934.

40 of 1999.

15 of 1992.

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1919

relation to any person, point or matter as

in his opinion shall be useful for or relevant

for the purposes of this Act.

(2) Without prejudice to sub-section (1),

every officer or person referred to in sub-

-section (1) shall furnish such information

to any authority under this Act in such

form and manner as may be prescribed.

22. Power of authority to impound

documents.— (1) Where any books of

account or other documents are produced

before the authority in any proceedings

under this Act and the authority in this

behalf has reason to believe that any of

the books of account or other documents

are required to be impounded and retained

for any inquiry under this Act, it may

impound and retain the books of account

or other documents for a period not

exceeding three months from the date of

order of attachment made by the

Adjudicating Authority under sub-section

(3) of section 26:

Provided that the period for retention of

the books of account or other documents

may be extended beyond a period

exceeding three months from the date of

order of attachment made by the

Adjudicating Authority under sub-section

(3) of section 26 where the authority

records in writing the reasons for

extending the same.

(2) Where the authority impounding and

retaining the books of account or other

documents, under sub-section (1) is the

Initiating Officer, he shall obtain approval

of the Approving Authority within a period

of fifteen days from the date of initial

impounding and seek further approval

of the Approving Authority for extending

the period of initial retention, before the

expiry of the period of initial retention, if

so required.

(3) The period of retention of the books

of account or other documents under sub-

-section (1) shall in no case exceed a period

of thirty days from the date of conclusion

of all the proceedings under this Act.

(4) The person, from whom the books

of account or other documents were

impounded under sub-section (1), shall be

entitled to obtain copies thereof.

(5) On the expiry of the period specified

under sub-section (1), the books of account

or other documents shall be returned to

the person from whom such books of

account or other documents were

impounded unless the Approving Authority

or the Adjudicating Authority permits their

release to any other person.

23. Power of authority to conduct inquiry,

etc.— The Initiating Officer, after obtaining

prior approval of the Approving Authority,

shall have power to conduct or cause to

be conducted any inquiry or investigation

in respect of any person, place, property,

assets, documents, books of account or

other documents, in respect of any other

relevant matters under this Act.

CHAPTER IV

Attachment, Adjudication and Confiscation

24. Notice and attachment of property

involved in benami transaction.— (1)

Where the Initiating Officer, on the basis

of material in his possession, has reason to

believe that any person is a benamidar in

respect of a property, he may, after

recording reasons in writing, issue a notice

to the person to show cause within such

time as may be specified in the notice why

the property should not be treated as

benami property.

(2) Where a notice under sub-section (1)

specifies any property as being held by a

benamidar referred to in that sub-section,

a copy of the notice shall also be issued to

the beneficial owner if his identity is

known.

(3) Where the Initiating Officer is of the

opinion that the person in possession of

OFFICIAL GAZETTE — GOVT. OF GOA

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1920

the property held benami may alienate the

property during the period specified in the

notice, he may, with the previous approval

of the Approving Authority, by order in

writing, attach provisionally the property

in the manner as may be prescribed, for a

period not exceeding ninety days from the

date of issue of notice under sub-section

(1).

(4) The Initiating Officer, after making

such inquires and calling for such reports

or evidence as he deems fit and taking

into account all relevant materials, shall,

within a period of ninety days from the

date of issue of notice under sub-section

(1),—

(a) where the provisional attachment

has been made under sub-section (3),—

(i) pass an order continuing the

provisional attachment of the property

with the prior approval of the

Approving Authority, till the passing

of the order by the Adjudicating

Authority under sub-section (3) of

section 26; or

(ii)

revoke

the

provisional

attachment of the property with the

prior approval of the Approving

Authority;

(b) where provisional attachment has

not been made under sub-section (3),—

(i) pass an order provisionally

attaching the property with the prior

approval of the Approving Authority,

till the passing of the order by the

Adjudicating Authority under sub-

-section (3) of section 26; or

(ii) decide not to attach the property

as specified in the notice, with the

prior approval of the Approving

Authority.

(5) Where the Initiating Officer passes

an order continuing the provisional

attachment of the property under sub-

-clause (i) of clause (a) of sub-section (4)

or passes an order provisionally attaching

the property under sub-clause (i) of clause

(b) of that sub-section, he shall, within

fifteen days from the date of the

attachment, draw up a statement of the

case and refer it to the Adjudicating

Authority.

25. Manner of service of

notice.— (1) A notice under sub-

-section (1) of section 24 may be

served on the person named

therein either by post or as if it

were a summons issued by a

Court under the Code of Civil

Procedure, 1908.

(2) Any notice referred to in sub-section

(1) may be addressed—

(i) in case of an individual, to such

individual;

(ii) in the case of a firm, to the

managing partner or the manager of the

firm;

(iii) in the case of a Hindu undivided

family, to Karta or any member of such

family;

(iv) in the case of a company, to the

principal officer thereof;

(v) in the case of any other

association or body of individuals, to

the principal officer or any member

thereof;

(vi) in the case of any other person

(not being an individual), to the person

who manages or controls his affairs.

26. Adjudication of benami property.—

(1) On receipt of a reference under sub-

-section (5) of section 24, the Adjudicating

Authority shall issue notice, to furnish such

documents, particulars or evidence as is

considered necessary on a date to be

specified therein, on the following persons,

namely:—

(a) the person specified as a

benamidar therein;

5 of 1908.

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(b) any person referred to as the

beneficial owner therein or identified as

such;

banking company;

(d) any person who has made a claim

in respect of the property:

Provided that the Adjudicating

Authority shall issue notice within a

period of thirty days from the date on

which a reference has been received:

Provided further that the notice shall

provide a period of not less than thirty

days to the person to whom the notice

is issued to furnish the information

sought.

(2) Where the property is held jointly by

more than one person, the Adjudicating

Authority shall make all endeavours to

serve notice to all persons holding the

property:

Provided that where the notice is served

on anyone of the persons, the service of

notice shall not be invalid on the ground

that the said notice was not served to all

the persons holding the property.

(3) The Adjudicating Authority shall,

after—

(a) considering the reply, if any, to the

notice issued under sub-section (1);

(b) making or causing to be made

such inquiries and calling for such

reports or evidence as it deems fit; and

materials,

provide an opportunity of being heard to

the person specified as a benamidar

therein, the Initiating Officer, and any other

person who claims to be the owner of the

property, and, thereafter, pass an order—

(i) holding the property not to be a

benami property and revoking the

attachment order; or

(ii) holding the property to be a benami

property and confirming the attachment

order, in all other cases.

(4) Where the Adjudicating Authority is

satisfied that some part of the properties

in respect of which reference has been

made to him is benami property, but is not

able to specifically identify such part, he

shall record a finding to the best of his

judgment as to which part of the properties

is held benami.

(5) Where in the course of proceedings

before it, the Adjudicating Authority has

reason to believe that a property, other

than a property referred to it by the

Initiating Officer is benami property, it shall

provisionally attach the property and the

property shall be deemed to be a property

referred to it on the date of receipt of

the reference under sub-section (5) of

section 24.

(6) The Adjudicating Authority may, at

any stage of the proceedings, either on

the application of any party, or suo motu,

strike out the name of any party

improperly joined or add the name of any

person whose presence before the

Adjudicating Authority may be necessary

to enable him to adjudicate upon and

settle all the questions involved in the

reference.

(7) No order under sub-section (3) shall

be passed after the expiry of one year from

the end of the month in which the reference

under sub-section (5) of section 24 was

received.

(8) The benamidar or any other person

who claims to be the owner of the property

may either appear in person or take the

assistance of an authorised representative

of his choice to present his case.

Explanation.— For the purposes of sub-

-section (8), authorised representative

means a person authorised in writing,

being—

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(i) a person related to the benamidar

or such other person in any manner, or

a person regularly employed by the

benamidar or such other person as the

case may be; or

(ii) any officer of a scheduled bank with

which the benamidar or such other

person 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.

27. Confiscation and vesting of benami

property.— (1) Where an order is passed

in respect of any property under sub-

-section (3) of section 26 holding such

property to be a benami property, the

Adjudicating Authority shall, after giving

an opportunity of being heard to the

person concerned, make an order

confiscating the property held to be a

benami property:

Provided that where an appeal has been

filed against the order of the Adjudicating

Authority, the confiscation of property shall

be made subject to the order passed by

the Appellate Tribunal under section 46:

Provided further that the confiscation of

the property shall be made in accordance

with

such

procedure

may

prescribed.

(2) Nothing in sub-section (1) shall apply

to a property held or acquired by a person

from

the

benamidar

for

adequate

consideration, prior to the issue of notice

under sub-section (1) of section 24 without

his having knowledge of the benami

transaction.

(3) Where an order of confiscation has

been made under sub-section (1), all the

rights and title in such property shall vest

absolutely in the Central Government free

of all encumbrances and no compensation

shall be payable in respect of such

confiscation.

(4) Any right of any third person created

in such property with a view to defeat the

purposes of this Act shall be null and void,

(5) Where no order of confiscation is

made upon the proceedings under this Act

attaining finality, no claim shall lie against

the Government.

28.

Management

properties

confiscated.— (1) The Administrator shall

have the power to receive and manage

the property, in relation to which an order

of confiscation under sub-section (1) of

section 27 has been made, in such manner

and subject to such conditions, as may be

prescribed.

(2) The Central Government may, by

order published in the Official Gazette,

notify as many of its officers as it thinks fit,

to perform the functions of Administrators.

(3) The Administrator shall also take

such measures, as the Central Government

may direct, to dispose of the property

which is vested in the Central Government

under sub-section (3) of section 27, in such

manner and subject to such conditions as

may be prescribed.

29. Possession of the property.— (1)

Where an order of confiscation in respect

of a property under sub-section (1) of

section

27,

has

been

made,

the

Administrator shall proceed to take the

possession of the property.

(2) The Administrator shall,—

(a) by notice in writing, order within

seven days of the date of the service of

notice to any person, who may be in

possession of the benami property, to

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surrender or deliver possession thereof

to the Administrator or any other person

duly authorised in writing by him in this

behalf;

(b) in the event of non-compliance of

the order referred to in clause (a), or if

in his opinion, taking over of immediate

possession is warranted, for the purpose

of forcibly taking over possession,

requisition the service of any police

officer to assist him and it shall be the

duty of the officer to comply with the

requisition.

CHAPTER V

Appellate Tribunal

30.

Establishment

Appellate

Tribunal.— The Central Government shall,

by notification, establish an Appellate

Tribunal to hear appeals against the orders

of the Adjudicating Authority under this

Act.

31. Composition, etc., of Appellate

Tribunal.— (1) The Appellate Tribunal shall

consist of a Chairperson and at least two

other Members of which one shall be a

Judicial Member and other shall be an

Administrative Member.

(2) Subject to the provisions of this

Act,—

(a) the jurisdiction of the Appellate

Tribunal may be exercised by Benches

thereof;

(b) a Bench may be constituted by the

Chairperson with two Members as the

Chairperson may deem fit;

Tribunal shall ordinarily sit in the

National Capital Territory of Delhi and

at such other places as the Central

Government may, in consultation with

the Chairperson, by notification, specify;

(d) the Central Government shall, by

notification, specify the areas in relation

to which each Bench of the Appellate

Tribunal may exercise its jurisdiction.

(3) Notwithstanding anything contained

in sub-section (2), the Chairperson may

transfer a Member from one Bench to

another Bench.

32. Qualifications for appointment of

Chairperson and Members of Appellate

Tribunal.— (1) A person shall not be

qualified for appointment as Chairperson

of the Appellate Tribunal unless he is a

sitting or retired Judge of a High Court,

who has completed not less than five years’

of service.

(2) A person shall not be qualified for

appointment as a Member unless he—

(a) in the case of a Judicial Member,

has been a Member of the Indian Legal

Service and has held the post of

Additional Secretary or equivalent post

in that Service;

(b) in the case of an Administrative

Member, has been a Member of the

Indian Revenue Service and has held

the post of Chief Commissioner of

Income-tax or equivalent post in that

Service.

(3) No sitting Judge of a High Court shall

be appointed under this section except

after consultation with the Chief Justice of

the High Court.

(4) The Chairperson or a Member

holding a post as such in any other

Tribunal, established under any law for the

time being in force, in addition to his

being the Chairperson or a Member of

that Tribunal, may be appointed as the

Chairperson or a Member, as the case may

be, of the Appellate Tribunal under this

Act.

33. Terms and conditions of services of

Chairperson and Members of Appellate

Tribunal.— (1) The salary and allowances

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payable to, and the other terms and

conditions of service of the Chairperson

and other Members shall be such as may

be prescribed and shall not be varied to

their disadvantage during their tenure.

(2) Any vacancy caused to the office of

the Chairperson or any other Member shall

be filled up within a period of three months

from the date on which such vacancy

occurs.

34. Term of office of Chairperson and

Members.— The Chairperson and Members

of the Appellate Tribunal shall hold office

for a term not exceeding five years from

the date on which they enter upon their

office, or until they attain the age of sixty-

five years, whichever is earlier and shall

not be eligible for reappointment.

35. Removal of Chairperson and Member

from office in certain circumstances.— (1)

The

Central

Government

may,

consultation with the Chief Justice of

High Court, remove from office of the

Chairperson or any Member, who—

(a) has been adjudged as an insolvent;

(b) has been convicted of an offence

which, in the opinion of the Central

Government involves moral turpitude; or

incapable; or

(d) has acquired such financial or

other interest as is likely to affect

prejudicially his functions; or

(e) has so abused his position as to

render his continuance in office

prejudicial to the public interest.

(2) The Chairperson or Judicial Member

shall not be removed from his office except

by an order made by the Central

Government after an inquiry made by

Chief Justice of the High Court in which

the Chairperson or Judicial Member has

been informed of the charges against him

and given a reasonable opportunity of

being heard in respect of those charges.

(3) The Central Government may

suspend from office the Chairperson or

Judicial Member in respect of whom a

reference of conducting an inquiry has

been made to the Chief Justice of the High

Court under sub-section (2), until the

Central Government passes an order on

receipt of the report of inquiry made by

Chief Justice of the High Court on the

reference.

(4) The Central Government may

regulate the procedure for inquiry referred

to in sub-section (2) in the manner as may

be prescribed.

(5) The Administrative Member may be

removed from his office by an order of the

Central Government on the grounds

specified in sub-section (1) and in

accordance with the procedure notified by

the Central Government:

Provided that the Administrative

Member shall not be removed unless he

has been given an opportunity of being

heard in the matter.

36. Vacancies, etc., not to invalidate

proceedings of Appellate Tribunal.— No act

or proceeding of the Appellate Tribunal

shall be invalid merely by reason of—

(a) any vacancy in, or any defect in

the constitution of the Tribunal; or

(b) any defect in the appointment of a

person acting as a Member of the

Tribunal; or

of the Tribunal not affecting the merits

of the case.

37. Resignation and removal.— The

Chairperson or any other Member may, by

notice in writing under his hand addressed

to the Central Government, resign his

office:

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Provided that the Chairperson or any

other Member shall, unless he is permitted

by the Central Government to relinquish

his office sooner, continue to hold office

until the expiry of three months from the

date of receipt of the notice or until a

person duly appointed as his successor

enters upon his office or until the expiry of

his term of office, whichever is earlier.

38. Member to act as Chairperson in

certain circumstances.— (1) In the event

of the occurrence of any vacancy in the

office of the Chairperson of the Appellate

Tribunal by reason of his death, resignation

or otherwise, the senior-most Member

shall act as the Chairperson until the date

on which a new Chairperson, appointed

in accordance with the provisions of this

Act to fill such vacancy, enters upon his

office.

(2) When the Chairperson is unable to

discharge his functions owing to absence,

illness or any other cause, the senior-most

Member shall discharge the functions of

the Chairperson until the date on which

the Chairperson resumes his duties.

39. Staff of Appellate Tribunal.— (1) The

Central Government shall provide the

Appellate Tribunal with such officers and

employees as it may thinks fit.

(2) The officers and employees of the

Appellate Tribunal shall discharge their

functions under the general superinten-

dence of the Chairperson.

(3) The salaries and allowances and

other conditions of service of the officers

and employees of the Appellate Tribunal

shall be such, as may be prescribed.

40. Procedure and powers of

Appellate Tribunal.— (1) The

Appellate Tribunal shall not be

bound by the procedure laid

down by the Code of Civil

Procedure, 1908, but shall be

guided by the principles of

natural justice and, subject to the

other provisions of this Act, the

Appellate Tribunal shall have

powers to regulate its own

procedure.

(2) The Appellate Tribunal

shall, for the purposes of

discharging its functions under

this Act, have the same powers

as are vested in a civil court

under

the

Code

Civil

Procedure, 1908 while trying a

suit, in respect of the following

matters, namely:—

(a) summoning and enforcing the

attendance of any person and examining

him on oath;

(b) requiring the discovery and

production of documents;

(d) subject to the provisions

of sections 123 and 124 of the

Indian Evidence Act, 1872,

requisitioning

any

public

record or document or copy of

such record or document from

any office;

(e) issuing commissions for the

examination of witnesses or documents;

(f) reviewing its decisions;

(g) dismissing a representation for

default or deciding it ex parte;

(h) setting aside any order of dismissal

of any representation for default or any

order passed by it ex parte; and

(i) any other matter, which may be,

prescribed by the Central Government.

(3) An order made by the Appellate

Tribunal under this Act shall be executable

by it as a decree of civil court and, for this

1 of 1872.

5 of 1908.

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purpose, the Appellate Tribunal shall have

all the powers of a civil court.

(4) Notwithstanding anything contained

in sub-section (3), the Appellate Tribunal

may transmit any order made by it to a

civil court having jurisdiction and the civil

court shall execute the order as if it were

a decree made by that court.

(5) All proceedings before the

Appellate Tribunal shall be

deemed to be judicial procee-

dings within the meaning of

sections 193 and 228 of the Indian

Penal Code and the Appellate

Tribunal shall be deemed to be a

civil court for the purposes of

sections 345 and 346 of the Code

of Criminal Procedure, 1973.

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.

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.

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.

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. 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.

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 of the order.

(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), the Appellate Tribunal may,

after giving the parties to the appeal an

opportunity of being heard, pass such

orders thereon as it thinks fit.

45 of 1860.

2 of 1974.

45 of 1860.

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(4) An Appellate Tribunal while deciding

the appeal shall have the power—

(a) to determine a case finally, where

the evidence on record is sufficient;

(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;

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 is filed.

47. Rectification of mistakes.— (1) The

Appellate Tribunal or the Adjudicating

Authority may, in order to rectify any

mistake apparent on the face of the record,

amend any order made by it under section

26 and section 46 respectively, within a

period of one year from the end of the

month in which the 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.

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;

(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.

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

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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,

relating to appeals to the High

Court shall, as far as may be,

apply in the case of appeals under

this section.

CHAPTER VI

Special Courts

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, 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

writing

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.

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, shall apply to

the proceedings before a Special

Court and the persons condu-

cting 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.

5 of 1908.

2 of 1974.

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(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

and

the

provisions of that Code shall have

effect accordingly.

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, 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.

CHAPTER VII

Offences and Prosecution

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.

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.

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 Board.’.

10. Substitution of new Chapter VIII for

sections 7 and 8.— For sections 7 and 8 of

the principal Act, the following shall be

substituted, namely:—

‘CHAPTER VIII

Miscellaneous

56. Repeal of provisions of

certain Acts.— (1) Sections 81, 82

and 94 of the Indian Trusts Act,

1882, section 66 of the Code of

Civil Procedure, 1908 and section

281A of the Income-tax Act, 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

in the State of Jammu and

Kashmir.

57. Certain transfers to be null

and void.— Notwithstanding

2 of 1974.

2 of 1882.

5 of 1908.

43 of 1961.

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1930

anything contained in the Transfer

of the Property Act, 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.

58. Exemption.— (1) The Central

Government may, by notification, exempt

any property relating to charitable or

religious trusts from the operation of this

Act.

(2) Every notification issued under

sub-section (1) shall be laid before each

House of Parliament,

59. Power of Central Government to

issue directions, etc.— (1) The Central

Government may, from time to time, issue

such orders, instructions or directions to

the authorities or require any person to

furnish information as it may deem fit for

the proper administration of this Act and

such authorities and all other persons

employed in execution of this Act shall

observe and follow the orders, instructions

and directions of the Central Government.

(2) In issuing the directions or orders

referred to in sub-section (1), the Central

Government may have regard to anyone

or more of the following criteria, namely:—

(a) territorial area;

(b) classes of persons;

(d) any other criterion that may be

specified by the Central Government in

this behalf.

(3) No orders, instructions or directions

under sub-section (1) shall be issued so

as to—

(a) require any authority to decide

a particular case in a particular

manner; or

(b) interfere with the discretion of the

Adjudicating Authority in the discharge

of its functions.

60. Application of other laws not

barred.— The provisions of this Act shall

be in addition to, and not, save as

hereinafter

expressly

provided,

derogation of any other law for the time

being in force.

61. Offences to be non-

-cognizable.— Notwithstanding

anything contained in the Code

of Criminal Procedure, 1973, an

offence under this Act shall be

non-cognizable.

62. Offences by companies.— (1) Where

a person committing contravention of any

of the provisions of this Act or of any rule,

direction or order made thereunder is a

company, every person who, at the time

the contravention was committed, was in

charge of, and was responsible to, the

company, for the conduct of the business

of the company as well as the company,

shall be deemed to be guilty of the

contravention and shall be liable to be

proceeded

against

and

punished

accordingly.

(2) Nothing contained in sub-section (1),

shall render any person liable to

punishment if he proves that the

contravention took place without his

knowledge.

(3) Notwithstanding anything contained

in sub-section (1), where a contravention

of any of the provisions of this Act or of

any rule, direction or order made

thereunder has been committed by a

company and it is proved that the

contravention has taken place with the

4 of 1882.

2 of 1974.

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1931

consent or connivance of, or is attributable

to any neglect on the part of any director,

manager, secretary or other officer of the

company, the director, manager, secretary

or other officer shall also be deemed to be

guilty of the contravention and shall be

liable to be proceeded against and

punished accordingly.

Explanation.— For the purposes of this

section,—

(a) “company” means a body

corporate, and includes—

(i) a firm; and

(ii) an association of persons or

a body of individuals whether

incorporated or not; and

(b) “director”, in relation to—

(i) a firm, means a partner in the

firm;

(ii) any association of persons or a

body of individuals, means any

member controlling the affairs thereof.

63. Notice, etc., not to be invalid on

certain grounds.— No notice, summons,

order, document or other proceeding,

furnished or made or issued or taken or

purported to have been furnished or made

or issued or taken in pursuance of any of

the provisions of this Act shall be invalid,

or shall be deemed to be invalid merely by

reason of any mistake, defect or omission

in the notice, summons, order, document

or other proceeding if the notice, summons,

order, document or other proceeding is in

substance and effect in conformity with or

according to the intent and purpose of

this Act.

64. Protection of action taken in good

faith.— No prosecution, suit or other pro-

ceeding shall lie against the Government

or any officer of the Government or the

Appellate Tribunal or the Adjudicating

Authority established under this Act, for

anything done or intended to be done in

good faith under this Act.

65. Transfer of pending cases.— (1) Every

suit or proceeding in respect of a benami

transaction pending in any Court (other

than a High Court) or Tribunal or before

any

forum

the

date

the

commencement of this Act shall stand

transferred to the Adjudicating Authority

or the Appellate Tribunal, as the case

may be, having jurisdiction in the

matter.

(2) Where any suit, or other proceeding

stands transferred to the Adjudicating

Authority or the Appellate Tribunal under

sub-section (1),—

(a) the court, Tribunal or other forum

shall, as soon as may be, after the

transfer, forward the records of the suit,

or other proceeding to the Adjudicating

Authority or the Appellate Tribunal, as

the case may be;

(b) the Adjudicating Authority may, on

receipt of the records, proceed to deal

with the suit, or other proceeding, so

far as may be, in the same manner as in

the case of a reference made under sub-

section (5) of section 24, from the stage

which was reached before the transfer

or from any earlier stage or de novo

as the Adjudicating Authority may

deem fit.

66. Proceedings, etc., against legal

representative.— (1) Where a person dies

during the course of any proceeding under

this Act, any proceeding taken against the

deceased before his death shall be deemed

to have been taken against the legal

representative and may be continued

against the legal representative from the

stage at which it stood on the date of the

death of the deceased.

(2) Any proceeding which could have

been taken against the deceased if he had

survived may be taken against the legal

representative and all the provisions of this

Act, except sub-section (2) of section 3 and

the provisions of Chapter VII, shall apply

accordingly.

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1932

(3) Where any property of a person has

been held benami under sub-section (3) of

section 26, then, it shall be lawful for the

legal representative of the person to prefer

an appeal to the Appellate Tribunal, in

place of the person and the provisions of

section 46 shall, so far as may be, apply, or

continue to apply, to the appeal.

67. Act to have overriding effect.— The

provisions of this Act shall have effect,

notwithstanding anything inconsistent

therewith contained in any other law for

the time being in force.

68. Power to make rules.— (1) The

Central Government may, by notification,

make rules for carrying out the provisions

of this Act.

(2) In particular, and without prejudice

to the generality of the foregoing power,

such rules may provide for all or any of

the following matters, namely:—

(a) manner of ascertaining the fair

market value under clause 16 of

section 2;

(b) the manner of appointing the

Chairperson and the Member of the

Adjudicating Authorities under sub-

-section (2) of section 9;

payable to the Chairperson and the

Members of the Adjudicating Authority

under sub-section (1) of section 13;

(d) the powers and functions of the

authorities under sub-section (2) of

section 18;

(e) other powers of the authorities

under clause (f) of sub-section (1) of

section 19;

(f) the form and manner of furnishing

any information to the authority under

sub-section (2) of section 21;

(g) the manner of provisional

attachment of property under sub-

-section (3) of section 24;

(h) the procedure for confiscation of

benami property under the second

proviso to sub-section (1) of section 27;

(i) the manner and conditions to

receive and manage the property under

sub-section (1) of section 28;

(j) the manner and conditions of

disposal of property vested in the Central

Government under sub-section (3) of

section 28;

(k) the salaries and allowances

payable to and the other terms and

conditions of service of the Chairperson

and other Members of the Appellate

Tribunal under sub-section (1) of section

33;

(l) the manner of prescribing

procedure for removal of Chairperson

or Member under sub-section (4) of

section 35;

(m) the salaries and allowances

payable to and the other terms and

conditions of service of the officers and

employees of the Appellate Tribunal

under sub-section (3) of section 39;

(n) any power of the Appellate

Tribunal under clause (i) of sub-section

(2) of section 40;

(o) the form in which appeal shall be

filed and the fee for filing the appeal

under sub-section (1) of section 46;

(p) any other matter which is to be,

or may be, prescribed, or in respect of

which provision is to be made, by rules.

69. Laying of rules and notifications

before Parliament.— Every rule made and

notification issued under this Act shall be

laid, as soon as may be after it is made or

issued, before each House of Parliament,

while it is in session, for a total period of

thirty days which may be comprised in

one session or in two or more successive

sessions, and if, before the expiry of the

session immediately following the session

or the successive sessions aforesaid, both

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1933

Houses agree in making any modification

in the rules or notifications, as the case

may be, both Houses agree that the rules

or notifications, as the case may be, should

not be made or issued, the rule or

notification, as the case may be, shall

thereafter have effect only in such modified

form or be of no effect, as the case may be;

so, however, that any such modification or

annulment shall be without prejudice to

the validity of anything previously done

under that rule or notification, as the case

may be.

70. Power to remove difficulties.— (1) If

any difficulty arises in giving effect to the

provisions of this Act, the Central

Government may, by order, published in

the Official Gazette, make such provisions

not inconsistent with the provisions of this

Act as may appear to be necessary for

removing the difficulty.

(2) No order shall be made under this

section after the expiry of two years from

the commencement of this Act.

15 of 2003.

(3) Every order made under this section

shall be laid, as soon as may be after

it is made, before each House of

Parliament.

71. Transitional provision.—

The Central Government may, by

notification, provide that until the

Adjudicating Authorities are

appointed and the Appellate

Tribunal is established under this

Act, the Adjudicating Authority

appointed under sub-section (1)

of section 6 of the Money-

-Laundering Act, 2002 and the

Appellate Tribunal established

under section 25 of that Act may

discharge the functions of the

Adjudicating Authority and

Appellate Tribunal, respectively,

under this Act.’.

11. Amendment of section 9.— Section 9 of

the principal Act shall be renumbered as

section 72 thereof.

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