Indian Bare Act | Benami Property Law

Prohibition of Benami Property Transactions Act, 1988 & 2016 Amendment

The Benami Transactions (Prohibition) Amendment Act, 2016 (Act No. 43 of 2016) substantially amended the 1988 law. From 1 November 2016, the principal enactment is known as the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act).

Principal Act: Act 45 of 1988 2016 Amendment: Act 43 of 2016 Major 2016 provisions effective: 1 Nov 2016 Jurisdiction: India
Current-law note: This page preserves the section-wise internal links created for the 2016 amendment, but the controlling text is the current consolidated PBPT Act, 1988, because Parliament has amended several provisions after 2016. For example, later amendments changed the adjudicatory framework, and the earlier exclusion relating to Jammu & Kashmir no longer appears in section 1.

What the law covers

The PBPT Act prohibits benami transactions, restricts claims by an alleged real owner over property held benami, provides for attachment and confiscation of benami property, creates adjudication and appellate mechanisms, and prescribes offences and prosecution provisions.

Benami transactions prohibitedSection 3 prohibits entering into a benami transaction, subject to the statutory definition and exclusions contained in the Act.
ConfiscationProperty that is the subject matter of a benami transaction is liable to confiscation by the Central Government in accordance with the Act.
Attachment and adjudicationThe Act provides a statutory process for notice, provisional attachment, adjudication and confiscation.
Offences and prosecutionChapter VII contains punishment provisions, false-information offences and the requirement of previous sanction for prosecution.

Section-wise index

The links below are internal references to the site's section pages. Where a provision has subsequently been amended, substituted or omitted, consult the current consolidated Act in the official resources.

Chapter I - Preliminary

Chapter II - Prohibition of Benami Transactions

Chapter III - Authorities

Chapter IV - Attachment, Adjudication and Confiscation

Chapter V - Appellate Tribunal

Chapter VI - Special Courts

Chapter VII - Offences and Prosecution

Chapter VIII - Miscellaneous

The Supreme Court's 23 August 2022 judgment in Union of India v. Ganpati Dealcom Pvt. Ltd. was recalled in review on 18 October 2024 (2024 INSC 799). Accordingly, older summaries relying on that recalled judgment should not be treated as the current final position without checking later orders and the applicable facts.