Benami Law: What is the Benami Transactions (Prohibition) Act, 1988?

Introduced in 1988 and amended in 2016, the Benami Transactions (Prohibition) Act prohibits Benami transactions and gives the government the right to recover Benami property

The Supreme Court of India (SC) on Tuesday ruled that an amendment to the Benami Act that came into effect on November 1, 2016, cannot be applied retrospectively to the transactions between September 5, 1988, and October 25, 2016. 

The apex court also declared section 3 of the amendment act unconstitutional. The section provided a three-year jail term and a penalty for people involved in such transactions.

"There is no doubt that the unamended 1988 Act tried to create a strict liability offence and allowed separate acquisition of benami property. This begs the question whether such a criminal provision, which