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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?
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?
- a)1 only
- b)2 only
- c)1 and 3 only
- d)2 and 3 only
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
With reference to the 'Prohibition of Benami Property Transactions...
Salient features of Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)-
- The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine. The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner.
- The definition of a benami transaction has been widened to include a transaction made in a fictitious name; where the owner is not aware or denies knowledge of the ownership of the property or the person providing the consideration for the property is not traceable.
- Properties held benami are liable for confiscation by the Government without payment of compensation.
- An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.
- The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine. The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner.
- The definition of a benami transaction has been widened to include a transaction made in a fictitious name; where the owner is not aware or denies knowledge of the ownership of the property or the person providing the consideration for the property is not traceable.
- Properties held benami are liable for confiscation by the Government without payment of compensation.
- An appellate mechanism has been provided under the PBPT Act in the form of Adjudicating Authority and Appellate Tribunal.
Most Upvoted Answer
With reference to the 'Prohibition of Benami Property Transactions...
The correct answer is option 'B', i.e., statement 2 is correct, while statements 1 and 3 are incorrect.
Explanation:
• Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) is an Act enacted by the Indian Parliament to prevent the transactions related to the benami property. The Act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid or provided by another person.
• The Act prohibits benami transactions and provides for the confiscation of benami properties. The Act also provides for imprisonment and fine for the violators of the Act.
• The Act also provides for three authorities for investigations, namely Initiating Officer, Approving Authority, and Administrator. These authorities have the power to conduct inquiries, seize or attach benami properties, and initiate prosecution.
• However, the Act provides for an appellate mechanism. Any person aggrieved by an order passed by the authorities can file an appeal before the Appellate Tribunal constituted under the Act. The Appellate Tribunal has the power to hear appeals, review orders, and pass orders.
• Now, let's look at the statements given in the question:
Statement 1: A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
This statement is incorrect. The PBPT Act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid or provided by another person. It does not matter whether the owner of the property is aware or not of the transaction. If the transaction meets the criteria of a benami transaction, it is prohibited under the Act.
Statement 2: Properties held benami are liable for confiscation by the Government.
This statement is correct. The PBPT Act provides for the confiscation of benami properties. The Act empowers the authorities to seize or attach benami properties and initiate proceedings for confiscation.
Statement 3: The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
This statement is incorrect. The Act provides for an appellate mechanism. Any person aggrieved by an order passed by the authorities can file an appeal before the Appellate Tribunal constituted under the Act. Therefore, statement 3 is incorrect.
Hence, the correct answer is option 'B', i.e., statement 2 is correct, while statements 1 and 3 are incorrect.
Explanation:
• Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) is an Act enacted by the Indian Parliament to prevent the transactions related to the benami property. The Act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid or provided by another person.
• The Act prohibits benami transactions and provides for the confiscation of benami properties. The Act also provides for imprisonment and fine for the violators of the Act.
• The Act also provides for three authorities for investigations, namely Initiating Officer, Approving Authority, and Administrator. These authorities have the power to conduct inquiries, seize or attach benami properties, and initiate prosecution.
• However, the Act provides for an appellate mechanism. Any person aggrieved by an order passed by the authorities can file an appeal before the Appellate Tribunal constituted under the Act. The Appellate Tribunal has the power to hear appeals, review orders, and pass orders.
• Now, let's look at the statements given in the question:
Statement 1: A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
This statement is incorrect. The PBPT Act defines a benami transaction as any transaction in which property is transferred to one person for a consideration paid or provided by another person. It does not matter whether the owner of the property is aware or not of the transaction. If the transaction meets the criteria of a benami transaction, it is prohibited under the Act.
Statement 2: Properties held benami are liable for confiscation by the Government.
This statement is correct. The PBPT Act provides for the confiscation of benami properties. The Act empowers the authorities to seize or attach benami properties and initiate proceedings for confiscation.
Statement 3: The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
This statement is incorrect. The Act provides for an appellate mechanism. Any person aggrieved by an order passed by the authorities can file an appeal before the Appellate Tribunal constituted under the Act. Therefore, statement 3 is incorrect.
Hence, the correct answer is option 'B', i.e., statement 2 is correct, while statements 1 and 3 are incorrect.
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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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?
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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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?.
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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?a)1 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'B'. Can you explain this answer?.
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