Supreme Court strikes down Provision of 1988 Benami Law
On 23rd December, 2022, the Supreme Court struck down the two provisions of Prohibition of Benami Property Transactions Act, 1988.
About the Ruling
Section 3(2) of the Benami Transactions (Prohibition) Act, 1988
- Section 3 of the statute deals with the issue of Prohibition of benami transactions and its impugned sub-section (2) says: Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both.
- The apex court termed the provision unconstitutional on the ground of being manifestly arbitrary.
- Section 3(2) of the 2016 Act is ....
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