Cabinet approves new act to curb benami transactions
21 Jul 2011
The cabinet today approved a proposal to bring a new legislation for stricter control over benami transactions even as the government faces flak over the black money from civil society activists and the Supreme Court.
At the cabinet meeting chaired by Prime Minister Manmohan Singh it was decided that a new Benami Transactions (Prohibition) Bill 2011 will replace the existing Benami Transactions (Prohibition) Act, 1988.
Briefing the media after the meeting, Information and broadcasting minister Ambika Soni said that the new Bill contains elaborate provisions dealing with the definition of benami transaction and benami property, prohibited benami transactions, consequences of entering into a prohibited benami transaction and the procedure for implementing the benami law.
Under the proposed law, violators can be jailed for six months to two years and also be liable for a fine.
Explaining the need for a fresh legislation, the Soni said, "It was found that owing to infirmities in the (existing) legislation, formulation of rules would not be possible without a comprehensive legislation by repealing the Act".
Soni said after cabinet's approval, the proposed Bill would be tabled in Parliament. She, however did not offer a timeline.