The Union Cabinet on Wednesday approved a new Bill to curb the benami transaction and further prevent circulation of domestic black money. Known as Benami Transaction (Prohibition) Bill, the proposed legislation will provide confiscation of benami properties and prosecution leading to fine and imprisonment. “The Benami Transactions (Prohibition) (Amendment) Bill, 2015 provides for attachment and confiscation of benami properties and also fine with imprisonment. This is one more initiative to fight the menace of black money inside the country,” an official statement said.
The Department of Revenue, in consultation with the legislative Department, has amended the Benami Transactions (Prohibition) Act, 1988. “As a sequel to the announcement in the Budget, the Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to amend the Benami Transactions (Prohibition) Act, 1988 by moving of the Benami Transactions (Prohibition) (Amendment) Bill, 2015 in Parliament,” it added.
Finance Minister Arun Jaitley had assured the Parliament on various occasions on the Government’s intentions to bass a new Bill that will prevent benami transactions. The Benami Transactions (Prohibition) Act was earlier enacted in 1988, but the rules under that Act could not be formulated due to inherent infirmities in it.
Following this, in 2011 the government introduced in Parliament a Benami Transactions (Prohibition) Bill, which proposed replacing the 1988 Act. The Bill was referred to the Standing Committee on Finance for examination, which submitted its report in June 2012. However, the Bill lapsed with the dissolution of 15th lok Sabha.