JD (U) cautions Centre on application of new benami property law

The Janata Dal (United) has cautioned Prime Minister Narendra Modi and his government to reassure the people on the after effects of demonetisation and on the proposed issue of cracking down on benami properties.

"The JD (U) has always supported the decision of the Centre on demonetisation, but our party believes that a sense of immaturity was shown by the Centre in bringing out a big step like demonetisation, because of which, the entire nation is standing in queue in front of ATMs. We don't want the same thing happening in connection with the benami properties," JD (U) leader Rajiv Ranjan told ANI.

"Prime Minister Modi and his government should totally assure the common people that they won't face any problems due to this move against benami property holders," he added.

On Sunday, Prime Minister Modi warned that he would soon operationalise a law to deal with 'benami' properties as part of his government's crusade against corruption.

"You are possibly aware of a law about benami properties in our country which came into being in 1988, but neither was its rules ever framed, nor was it notified. It just lay dormant," he said.

A new Benami Act came into effect from November 1. It prohibits illegal benami transactions and those violating this act, can be sent to jail for up to seven years and also be asked to pay a penalty.