The Prohibition of Benami Property Transactions Act, 1988
Prohibits benami transactions, creates the adjudicating authority, and provides for confiscation of benami property by the Government.
- Sections
- 72
- Chapters
- 9
- Tier
- Tier 1
In one line
What this Act says
Bans holding property in someone else's name to hide the real owner — and lets the Government confiscate such property.
Penalties
What happens if you break it
Entering into a benami transaction
§53Rigorous imprisonment 1 – 7 years + fine up to 25% of the fair market value of the property.
Giving false information to authorities
§54Rigorous imprisonment 6 months – 5 years + fine up to 10% of fair market value.
Benami property
§5, §27Confiscation by the Central Government; no compensation to the benamidar or beneficial owner.
Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.
Key Sections & Penalties
Benami Property Act at a Glance
| Section | Type | Provision | Applicability | Details / Penalty |
|---|---|---|---|---|
| §2(9) | definition | Definition of Benami Transaction | - | Administrative / Structural |
| §3 | structural | Prohibition of benami transactions | - | Administrative / Structural |
| §53 | criminal | Entering into a benami transaction | - | Rigorous imprisonment 1 – 7 years + fine up to 25% of the fair market value of the property high RISK |
| §54 | criminal | Giving false information to authorities | - | Rigorous imprisonment 6 months – 5 years + fine up to 10% of fair market value high RISK |
| §5, 27 | civil | Benami property | - | Confiscation by the Central Government; no compensation to the benamidar or beneficial owner medium RISK |
Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.
Sources
Read the Act yourself
We always show you the local source PDF and at least one verifiable online reference, so you can check anything we say.
Source PDF
the_prohibition_of_benami_property_transactions_act,_1988.pdf
Full text · opens in new tab
Reference
Wikipedia
en.wikipedia.org · opens in new tab
About this Act
Quick facts
- Year
- 1988
- Sections
- 72
- Chapters
- 9
- Tier
- Tier 1