Section 14 Benami Act: Removal of Chairperson and Members of Adjudicating Authority

Section 14 was introduced as part of the 2016 restructuring of the benami law and originally prescribed the grounds and safeguards for removal of the Chairperson or Members of the Adjudicating Authority. The provision is now historical because Section 14 was omitted with effect from 1 July 2021.

Current legal status: Section 14 of the Prohibition of Benami Property Transactions Act, 1988 stands omitted with effect from 1 July 2021 by the Finance Act, 2021. It should not be presented as a presently operative removal provision.

Current position of the Adjudicating Authority

The present law uses the title Prohibition of Benami Property Transactions Act, 1988. Under the current Section 7, 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 Benami Act.

The earlier provisions concerning the separate composition, qualifications, benches, service conditions, removal and staffing of the Benami Adjudicating Authority in Sections 8 to 17 were omitted from 1 July 2021.

Why this matters: The text below is retained for historical and research purposes because it formed part of the law after the 2016 amendment. For current proceedings, readers should rely on the amended Act and the present institutional arrangement under Section 7.

Historical text of Section 14

14. Removal of Chairperson and Members of Adjudicating Authority.

(1) The Central Government may, by order, remove from office the Chairperson or other Members of the Adjudicating Authority if the Chairperson or such other Member, as the case may be:

(a) has been adjudged as an insolvent; or

(b) has been convicted of an offence involving moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest.

(2) No Chairperson or Member shall be removed from his office under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.

Meaning of the former removal grounds

Insolvency: the office-holder had been legally adjudged insolvent.
Conviction involving moral turpitude: the provision permitted removal following conviction for an offence of the stated character.
Physical or mental incapacity: the office-holder had become incapable of acting as a Member.
Conflicting financial or other interest: an interest existed that was likely to prejudicially affect the discharge of functions.
Abuse of position: misuse of office was of such a nature that continued holding of office was prejudicial to the public interest.

Former safeguard of reasonable opportunity of hearing

The former sub-section (2) expressly protected the Chairperson or Member against removal on the grounds relating to prejudicial financial or other interest and abuse of position unless a reasonable opportunity of being heard was first given. This embodied a statutory hearing requirement for those two grounds.

Official source and current text

For the current consolidated statute, including the omission of Section 14 and the substituted Section 7, refer to the Prohibition of Benami Property Transactions Act, 1988 on India Code.

This page is an explanatory legal reference. For a proceeding or compliance decision, the current statutory text, applicable rules, notifications and binding judicial decisions should be checked for the relevant date.

Updated for legal status as on 14 September 2026.