With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the followi

Question

With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements: 1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction. 2. Properties held benami are liable for confiscation by the Government. 3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism. Which of the statements given above is/are correct?

Accepted Answer

The Prohibition of Benami Property Transactions Act, 1988, defines a benami transaction broadly and does not require the property owner's knowledge for it to be considered benami. The Act explicitly states that properties acquired benami are subject to confiscation by the Central Government. Furthermore, the Act establishes authorities for investigation and specifies mechanisms for appeals against orders passed by these authorities.