Bill to deal with benami transactions introduced in LS

After enacting a law to bring back black money stashed abroad, the government today moved on the domestic front by introducing in the Lok Sabha a bill providing for confiscation of property and jail for benami transactions in a bid to unearth unaccounted wealth.
Hours after the Cabinet cleared the measure, Minister of State for Finance Jayant Sinha introduced the Benami Transactions (Prohibition) Bill as the House was to conclude the Budget session.
The government indicated that it was prepared to send the bill to a standing committee for scrutiny following demand from the opposition.
Later speaking to reporters, Finance Minister Arun Jaitley said benami dealings have to be made illegal.

"Those who keep property in benami in the country, this process has to end. This has to be made illegal," Jaitley told reporters shortly after the bill was introduced in Lok Sabha.
The Finance Minister further said the law to deal with benami transactions was enacted in 1988, but never implemented.

That is why "this new legislation is being brought. This is a positive step," he said.
The bill provides for stringent measures like confiscation of wealth, imprisonment and fine for violators.
When asked if the legislation will be passed in the ensuing monsoon session in July, he said it will depend on when the Standing Committee, to which the bill has been referred to, gives it report.

Apart from confiscation, the Bill provides for prosecution and aims to act as a major avenue for blocking generation and holding of black money in the form of benami property.
Sources said the government has expanded the definition of "property" in the benami bill and has also introduced a clause for 'known source of income' for buying assets.
For decades, benami transactions by nature have been entered into by people who buy immovable and other properties in others' names to avoid tax and disclosure of ownership.
It has been one of the major sources of generation of domestic black money. There are no exact estimates of how much black money is involved in benami transactions.