Section 21 of the Benami Act: Power to Call for Information

Section 21 of the Prohibition of Benami Property Transactions Act, 1988 empowers specified authorities to require information that is useful or relevant for proceedings under the Act. The provision is part of Chapter III dealing with authorities and their powers.

Current statutory name: The operative law is the Prohibition of Benami Property Transactions Act, 1988. The Benami Transactions (Prohibition) Amendment Act, 2016 substantially amended and renamed the earlier law with effect from 1 November 2016.

Text of Section 21 - Power to call for information

21. Power to call for information.

(1) The Initiating Officer or the Approving Authority or the Adjudicating Authority shall have power to require any officer of the Central Government or State Government or a local body or any person or officer who is responsible for registering and maintaining books of account or other documents containing a record of any transaction relating to any property or any other person to furnish any information in relation to any person, point or matter as in his opinion shall be useful for or relevant for the purposes of this Act.

(2) Without prejudice to sub-section (1), every officer or person referred to in sub-section (1) shall furnish such information to any authority under this Act in such form and manner as may be prescribed.

What Section 21 means

Section 21 is an information-gathering provision. It enables the Initiating Officer, Approving Authority and Adjudicating Authority to obtain records or information relevant to the enforcement of the Benami Act. The request may extend to government officers, local bodies, persons maintaining transaction records and other persons who possess information relevant to a person, property, transaction, point or matter under examination.

The power is linked to information considered useful or relevant for the purposes of the Act.
The power may be exercised by the Initiating Officer, Approving Authority or Adjudicating Authority.
The information may concern a person, property transaction, record, point or other relevant matter.
Persons covered by sub-section (1) are required by sub-section (2) to furnish information in the prescribed form and manner.
The provision should be read with the wider powers and procedures contained in Sections 18, 19, 22, 23 and 24 of the Act.

Key authorities referred to in Section 21

Initiating Officer Under Section 2(19), an Initiating Officer means an Assistant Commissioner or Deputy Commissioner as defined in the Income-tax Act, 1961.

Approving Authority Under Section 2(4), the Approving Authority means an Additional Commissioner or Joint Commissioner as defined in the Income-tax Act, 1961.

Adjudicating Authority Section 2(1) defines the Adjudicating Authority by reference to Section 7 of the Benami Act.

Authority under the Act Section 18 identifies the authorities for purposes of the Act, including the Initiating Officer, Approving Authority, Administrator and Adjudicating Authority.

Compliance and penalty for failure to furnish information

Section 54A is directly relevant to a request made under Section 21. A person who fails to furnish information required under Section 21 may be liable to a penalty of Rs. 25,000 for each failure. The authority that called for the information may impose the penalty, but the person must first be given an opportunity of being heard. The Act also provides that no penalty should be imposed where good and sufficient reasons prevented compliance.

Separately, Section 54 deals with knowingly giving false information or furnishing a false document in proceedings under the Act. Accordingly, a recipient of a lawful information request should ensure that the response is complete, accurate and supported by the available records.

Relationship with nearby provisions

Section 21 forms part of a sequence of enforcement provisions in Chapter III. Section 20 identifies officers who assist the authorities; Section 22 deals with impounding documents; and Section 23 deals with inquiry or investigation by the Initiating Officer in the circumstances specified by that section. Section 24 then provides the statutory framework for notice and attachment of property alleged to be involved in a benami transaction.

Practical points for responding to a Section 21 request

Check the identity and designation of the authority issuing the request.
Read the request carefully and identify each document, transaction and period for which information is sought.
Preserve the original records and provide legible, complete copies where copies are requested.
Where any requested information is unavailable, explain the position accurately instead of supplying assumptions.
Maintain proof of submission, including the covering letter, acknowledgement and electronic filing record, where applicable.
For disputed, extensive or sensitive requests, obtain professional advice on the scope of the statutory requirement and the response.

Official legal resources

Last reviewed: 14 September 2026. Users should verify the current text of the Act, Rules and notifications from official sources before relying on this page for a specific proceeding.