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
Correct Answer
C
1 and 3 only
D
2 and 3 only
Explanation
Statement 2 is correct because the PBPT Act empowers the Central Government to confiscate properties found to be benami without paying any compensation to the holder. Statement 3 is the most tempting error, but it is incorrect because the Act explicitly provides for a multi-layered appellate mechanism, including an Adjudicating Authority and a dedicated Appellate Tribunal. The core concept being tested is the legal framework and enforcement powers of the government under India's anti-corruption and property laws.
Economic LegislationProhibition of Benami Property Transactions ActProhibition of Benami Property Transactions Act 1988PBPT ActBenami Transactions (Prohibition) Amendment Act 2016Adjudicating AuthorityAppellate TribunalConfiscation