UPSC Prelims 2017·GS1·polity-and-governance·governance

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?

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Last updated 23 May 2026, 3:31 pm IST
  1. A1 only
  2. B2 onlyCorrect
  3. C1 and 3 only
  4. D2 and 3 only

Explanation

Statement 1 is incorrect. A property transaction can be treated as benami even if the registered owner is not aware of the real beneficiary. The Act focuses on the beneficial ownership, not the awareness of the registered owner. Statement 2 is correct. Properties held benami are liable for confiscation by the Government as per the provisions of the Prohibition of Benami Property Transactions Act. Statement 3 is incorrect. The Act does provide for an appellate mechanism — it establishes an Adjudicating Authority and an Appellate Tribunal to hear cases related to benami transactions. Therefore, only statement 2 is correct.
polity-and-governance: With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following stateme
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