Section 12 Benami Act: Term of Office of Chairperson and Members of Adjudicating Authority

Section 12 originally prescribed the tenure of the Chairperson and Members of the Adjudicating Authority under the benami property law. The provision is now historical because Section 12 was omitted with effect from 1 July 2021.

Current legal position: Section 12 of the Prohibition of Benami Property Transactions Act, 1988 was omitted by the Tribunals Reforms (Rationalisation and Conditions of Service) Act, 2021 (Act 13 of 2021), section 156, with effect from 1 July 2021. Accordingly, the old five-year or age-sixty-two tenure rule reproduced below should not be treated as a presently operative provision.

What did Section 12 provide?

Before its omission, Section 12 governed the maximum term of office of the Chairperson and Members of the Adjudicating Authority. The provision also imposed an age ceiling and barred reappointment.

Historical text of Section 12

The Chairperson and Members of the Adjudicating Authority shall hold office for a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of sixty-two years, whichever is earlier and shall not be eligible for reappointment.

Meaning of the historical provision

The former Section 12 placed two alternative limits on tenure. A Chairperson or Member could remain in office only until the earlier of: completion of a term not exceeding five years, or attainment of sixty-two years of age. The same provision also stated that the person was not eligible for reappointment.

Why Section 12 is no longer operative

The statutory structure of the Adjudicating Authority was changed in 2021. Sections 8 to 17 were omitted, including the provisions dealing with composition, qualifications, benches, tenure, service conditions, removal, vacancies and staff of the earlier Adjudicating Authority.

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 shall be the Adjudicating Authority for the purposes of the Prohibition of Benami Property Transactions Act, 1988. Section 18 continues to list the Adjudicating Authority among the authorities under the Act.

Current name of the law

The statute is presently titled the Prohibition of Benami Property Transactions Act, 1988. The 2016 amendment substantially revised the earlier Prohibition of Benami Transactions Act, 1988, including its short title and enforcement framework.

Official legal source

Readers dealing with a pending proceeding, limitation issue, attachment, adjudication or appeal should verify the latest consolidated statutory text and applicable notifications before relying on an older version of the Act.