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?
- A.1 only
- B.2 only
- C.1 and 3 only
- D.2 and 3 only
Correct answer
Explanation
The correct answer is B, 2 only. Benami property can be confiscated by the Central Government, but the Act covers transactions the owner is unaware of and it does provide an appeal.
A benami transaction is one in which property is held in one person's name while the money is paid by someone else, who enjoys the benefit. The 1988 law was strengthened by an amendment in force from 1 November 2016, renaming it the Prohibition of Benami Property Transactions Act. Its definition of benami includes property whose owner is not aware of, or denies knowledge of, the ownership. It sets up four authorities, the Initiating Officer, Approving Authority, Administrator and Adjudicating Authority, and appeals lie to an Appellate Tribunal and then to the High Court. Benami property is liable to confiscation, and offenders face rigorous imprisonment and a fine.
Statement 1 is wrong: a transaction the owner does not know of is expressly a benami transaction.
Statement 3 is wrong: there are four authorities and an Appellate Tribunal.
So A, C and D are wrong.
Exam tip: Benami Act 1988, amended 2016: four authorities, Appellate Tribunal, confiscation of benami property.
Practice Questions
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I. It is important for the upliftment of rural poor as majority of low producing indigenous animals are with small and marginal farmers and landless labourers.
II. It was initiated to promote indigenous cattle and buffalo rearing and conservation in a scientific and holistic manner.
Which of the statements given above is/are correct?
- A.I only
- B.II only
- C.Both I and II
- D.Neither I nor II
Show answer
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- B.Ministry of Labour and Employment
- C.NITI Aayog
- D.Ministry of Skill Development and Entrepreneurship
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1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinica) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.
How many of the above statements are correct?
- A.Only one
- B.Only two
- C.All three
- D.None
Show answer
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- A.Release of Neem oil in the soil increases nitrogen fixation by the soil microorganisms
- B.Neem coating slows down the rate of dissolution of urea in the soil
- C.Nitrous oxide, which is a greenhouse gas, is not at all released into atmosphere by crop fields
- D.It is a combination of a weedicide and a fertilizer for particular crops
Show answer
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Read the full explanation →Which one of the following statements regarding the objectives of the Second Five-Year Plan is not correct ?
- A.Development of the basic and heavy industry sector
- B.Increase in national income to raise living standards
- C.Expansion of the consumer goods sector
- D.Expansion of employment opportunities
Show answer
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Read the full explanation →