law must be tweaked, implemented stringently
Prime Minister Narendra Modi's remark that the Government is mulling a stringent law to tackle benami dealings should be welcomed by all. The move will be a logical extension to the November 8 decision of the demonetisation of nearly 85 per cent of the currency then in circulation. The demonetisation step had been taken to primarily strike at the domestic black money economy, but also to counter terror funding and corruption, both of which derive oxygen from the black market. The results so far have been mixed, but this was only to be expected. In any case, demonetisation alone was never going to be the solution to the problem. Everybody in the Government, including Prime Minister Modi, had known this. That is why he had been repeatedly, since November 8, saying that demonetisation was only one of the many steps the Government would be taking in the months to come to counter the black economy. Now that he has signalled clearly, in his Mann Ki Baat of November 25, that an “incisive law” against benami property would be forthcoming, the Government's intent cannot be questioned.
Those of his critics who have been carping all these weeks that the demonetisation decision was the Prime Minister's deliberate attempt to mislead the people and deflect their attention from issues that discomforted the Government, should now reconsider their position — though they are unlikely to. Bihar Chief Minister Nitish Kumar, who has, against the wishes of the Opposition, supported the demonetisation drive from day one, had called on the Government to tacklebenami dealings with the same fervour that it had shown in demonetising high-end currencies. He should be happy that the Prime Minister has indicated his resolve to move in that direction. Politically speaking, Prime Minister Modi's assurance of further surgical strikes on the economy, will take the sting out the tail of allegations that the opposition parties, especially the Congress, the Trinamool Congress and the left, have been levelling against the Government and him personally. As it is, their accusations have not gone too well with the people in general, as results to various local body elections have shown.
Benami dealings have proliferated across the country despite provisions in place. In August, Parliament had approved the Benami Transactions (Prohibition) Act. Way back in 1988, a law to deal with the issue was framed. But, as the Prime Minister pointed out, no serious effort was made to enforce it, with even rules not being framed. The new Act prohibits illegal transactions and provides for up to seven years of imprisonment (up from the previous three-year provision) and penalty for those found guilty of engaging in benami dealings. It is evident from the Prime Minister’s statement that not only would these Sections in the law be stringently enforced but also that there could be some tweaking of the Act to make it more effective. Either way, changes are in the offing.