Section 11 Benami Act: Power of Adjudicating Authority to Regulate Its Own Procedure

Section 11 was introduced into the statutory framework governing benami property proceedings by the Benami Transactions (Prohibition) Amendment Act, 2016. It stated that the Adjudicating Authority was not bound by the procedure in the Code of Civil Procedure, 1908, but was to be guided by the principles of natural justice and could regulate its own procedure, subject to the Act.

Current legal status: Section 11 has been omitted from the Prohibition of Benami Property Transactions Act, 1988 with effect from 1 July 2021 by Act 13 of 2021. Accordingly, this page explains the historical Section 11 and its relevance; it should not be read as reproducing a presently operative Section 11.

What did Section 11 provide?

Historical Section 11 - Power of Adjudicating Authority to regulate its own procedure:

The Adjudicating Authority was not bound by the procedure laid down by the Code of Civil Procedure, 1908. It was, however, required to be guided by the principles of natural justice and, subject to the other provisions of the Act, had power to regulate its own procedure.

Meaning and effect of the former provision

The former Section 11 gave the Adjudicating Authority procedural flexibility. The provision did not make ordinary civil-court procedure automatically applicable to every adjudication under the Benami law. Instead, it placed emphasis on natural justice and allowed the Authority to regulate its procedure within the limits of the statute.

Not strictly bound by the CPC: the Adjudicating Authority was not required to follow every procedural rule contained in the Code of Civil Procedure, 1908.
Natural justice remained mandatory: procedural flexibility did not dispense with fair hearing, notice, impartial decision-making, and a reasonable opportunity to present a case.
Procedure remained subject to the Act: the Authority could regulate procedure only consistently with the substantive and procedural requirements imposed by the Benami legislation.

Present position after 1 July 2021

The present statute no longer contains Section 11. The current Section 7 provides that the competent authority authorised under section 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 is the Adjudicating Authority for exercising the jurisdiction, powers, and authority conferred under the Prohibition of Benami Property Transactions Act, 1988.

Sections 8 to 17, including former Section 11, were omitted as part of the 2021 restructuring. Therefore, for current proceedings, the operative Act, applicable rules, notifications, and the present institutional framework should be consulted rather than relying on the pre-1 July 2021 text alone.

Definition of Adjudicating Authority

Section 2(1) of the Act defines the expression "Adjudicating Authority" by reference to Section 7. Following the 2021 amendment, Section 7 identifies the competent authority under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 as the Adjudicating Authority for purposes of the Benami Act.

Related provisions

The surrounding provisions dealing with authorities and adjudication include Section 18 - Authorities and jurisdiction, Section 19 - Powers of authorities, and Section 20 - Certain officers to assist in inquiry, etc..

Official source

For the current consolidated text, amendments, and statutory notes, refer to the India Code page for the Prohibition of Benami Property Transactions Act, 1988.

Last reviewed: 14 September 2026.