Tribunals for speedy disposal of Benami Cases
24, Oct 2018
Prelims level : Mains level : GS: Paper – III Inclusive growth and issues arising it.
The Union Cabinet approved setting up of the Appellate Tribunal and Adjudicating Authority for speedy disposal of case’s related to benami transactions.
- The government made an appointment of Adjudicating Authority, along with the three additional Benches and to establish the Appellate Tribunal under the PBPT Act.
- To provide the officers and employees to Adjudicating Authority, Benches of the Adjudicating Authority and Appellate Tribunal by diverting the existing posts at the same level/rank from the Income Tax Dept./Central Board of Direct Taxes (CBDT).
- The Adjudicating Authority and Appellate Tribunal shall sit in the National Capital Territory of Delhi (NCTD). Benches of Adjudicating Authority may sit in Kolkata, Mumbai and Chennai, and the necessary notification in this regard shall be issued after making consultation with the Chairperson of the proposed Adjudicating Authority.
- Earlier this month, the government had notified sessions courts in 34 States and Union Territories, which will act as special courts for trial of offences under the benami transaction law. The Adjudicating Authority and Appellate Tribunal will be based in Delhi.
- Benami transaction refers transactions made in a fictitious name, or the owner is not aware of the ownership of the property, or the person paying for the property is not traceable.
- With a view to curb the menace of black money, Parliament in August 2016 had passed the Benami Transactions (Prohibition) Act.
- The rules and all the provisions of the Benami Transactions (Prohibition) Act come into force on November 1, 2016.
- After coming into effect, the existing Benami Transactions (Prohibition) Act, 1988, was renamed as the Prohibition of Benami Property Transactions Act, 1988.
- The law prescribes that every trial should be conducted “as expeditiously as possible” and every endeavour should be made by the Special Court to conclude it within six months from the date of filing of the complaint.
- The approval will result in effective and better administration of cases referred to the Adjudicating Authority and speedy disposal of appeals filed against.
- The order of the Adjudicating Authority before the Appellate Tribunal.
- Appointment of the Adjudicating Authority would provide first stage review of administrative action under the PBPT Act. Establishment of the proposed Appellate Tribunal would provide an appellate mechanism for the order passed by the Adjudicating Authority under the PBPT Act.