Recently, Tejashwi Yadav, Bihar deputy chief minister had ridiculed allegations by investigating authorities about numerous benami properties registered in his name which according to him were acquired when he was a minor of 14-15 who can never commit such illegalities. But, both the Benami Transactions (Prohibition) Act, 1988, and the comprehensive amendment of 2016 do not assign any importance to the age of the benamidar, who is the holder of benami property. As per these laws, if the authorities establish nature of ownership of the property as benami , the properties are liable to be confiscated by the central government, irrespective of the fact that at the time of alleged acquisition of benami properties Tejashwi and his sister Misha Bharti were minor.
What the Benami Transactions (Prohibition) Act, 1988, and the comprehensive amendment carried out in 2016 provide?
- They are unequivocal on confiscation of benami properties.
- As far as, applicability of amendment of 2016 in transactions dealing with benami properties acquired before the act came in force depends on the interpretation of law by the court.
- The amendment provides stringent punishment without taking into account, the age of the person have not been taken into consideration for sale and purchase of benami properties. Punishment is:
- Imprisonment of 1 year, extendable upto 7 years.
- The person could be fined up to 25% of the fair market value of the benami property being transacted.
- If any benamidar provides wrong information to authorities or furnishes wrong documents then there is punishment of:
- Minimum 6 months imprisonment which could go up to 5 years, and
- a fine that could be 10% of the fair market value of the property in question.
- However, if the property is registered in his name by her/his parents both laws make it no offence for the child.
- As the property is held in the name of the child by the parents, the onus of establishing legitimate acquisition of the property will shift to the parents, and if they are public servants, under the more stringent Prevention of Corruption Act.