Section 35: Removal of Chairperson and Member from Office in Certain Circumstances
Contents
What does Section 35 of the PBPT Act deal with?
Section 35 lays down the circumstances and procedure in which the Chairperson or a Member of the Appellate Tribunal may be removed from office. It combines specified statutory grounds for removal with procedural protections intended to preserve fairness and institutional independence.
Under the Act, the expression Appellate Tribunal refers to the Appellate Tribunal established under Section 30. Section 35 deals specifically with removal from office; it should therefore be read with the surrounding provisions governing composition, qualifications, tenure, vacancies and functioning of the Appellate Tribunal.
Grounds for removal under Section 35(1)
The Central Government may, in consultation with the Chief Justice of the High Court, remove the Chairperson or any Member where the person:
- has been adjudged insolvent;
- has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude;
- has become physically or mentally incapable;
- has acquired a financial or other interest likely to prejudicially affect the discharge of functions; or
- has abused the position so as to make continuance in office prejudicial to the public interest.
These grounds address financial disqualification, criminal misconduct, incapacity, conflict of interest and abuse of office.
Removal of the Chairperson or Judicial Member: inquiry and hearing
Section 35(2) contains an additional safeguard for the Chairperson and a Judicial Member. Removal cannot be ordered unless the Central Government acts after an inquiry by the Chief Justice of the High Court. During that inquiry, the concerned Chairperson or Judicial Member must be informed of the charges and given a reasonable opportunity of being heard.
The requirement of disclosure of charges and a reasonable opportunity to respond reflects the statutory principle of procedural fairness before removal from judicial or quasi-judicial office.
Suspension during inquiry under Section 35(3)
Where a reference for inquiry has been made to the Chief Justice of the High Court under Section 35(2), the Central Government may suspend the Chairperson or Judicial Member from office until it passes an order after receiving the inquiry report.
Section 35(4) further authorises regulation of the inquiry procedure in the prescribed manner. Section 68 of the Act contains the rule-making power connected with the procedure contemplated by Section 35(4).
Removal of an Administrative Member
Section 35(5) permits removal of an Administrative Member by an order of the Central Government on the grounds specified in Section 35(1), in accordance with the notified procedure. The proviso expressly requires that the Administrative Member be given an opportunity of being heard before removal.
Text of Section 35
35. Removal of Chairperson and Member from office in certain circumstances.
(1) The Central Government may, in consultation with the Chief Justice of High Court, remove from office of the Chairperson or any Member, who -
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government involves moral turpitude; or
(c) has become physically or mentally incapable; 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) The Chairperson or Judicial Member shall not be removed from his office except by an order made by the Central Government after an inquiry made by Chief Justice of the High Court in which the Chairperson or Judicial Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.
(3) The Central Government may suspend from office the Chairperson or Judicial Member in respect of whom a reference of conducting an inquiry has been made to the Chief Justice of the High Court under sub-section (2), until the Central Government passes an order on receipt of the report of inquiry made by Chief Justice of the High Court on the reference.
(4) The Central Government may regulate the procedure for inquiry referred to in sub-section (2) in the manner as may be prescribed.
(5) The Administrative Member may be removed from his office by an order of the Central Government on the grounds specified in sub-section (1) and in accordance with the procedure notified by the Central Government:
Provided that the Administrative Member shall not be removed unless he has been given an opportunity of being heard in the matter.
Why Section 35 matters
Section 35 is an institutional safeguard provision. It identifies serious grounds that may justify removal while also prescribing procedural checks. In particular, the inquiry and hearing requirements for the Chairperson and Judicial Member, and the hearing requirement for an Administrative Member, help ensure that removal is not merely administrative but follows the statutory process.
Official legal resources
For current statutory verification, refer to the official consolidated text and government legal portals:
- India Code - Prohibition of Benami Property Transactions Act, 1988
- Income Tax Department - PBPT Act, 1988
- Income Tax Department - Prohibition of Benami Property Transactions Rules, 2016
This page is intended for legal information and statutory reference. For proceedings, compliance or litigation, verify the latest text, rules, notifications and judicial decisions applicable to the facts of the case.