Section 10 of the Benami Act: Constitution of Benches of Adjudicating Authority

Section 10 formerly governed the constitution and territorial functioning of Benches of the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988. The provision is now omitted.

Updated: 14 September 2026

Current legal status: Section 10 was omitted with effect from 1 July 2021 by section 156 of the Finance Act, 2021, which omitted sections 8 to 17 of the Prohibition of Benami Property Transactions Act, 1988. The text reproduced below is therefore historical and should not be treated as the present operative provision.

The present Act is titled the Prohibition of Benami Property Transactions Act, 1988. The 2016 legislation substantially amended the 1988 Act, but Section 10 was a provision of the principal Act as amended, not a standalone Section 10 of the Benami Transactions (Prohibition) Amendment Act, 2016.

What did Section 10 provide before it was omitted?

Before 1 July 2021, Section 10 dealt with the constitution of Benches of the Adjudicating Authority. In substance, it allowed the jurisdiction of the Adjudicating Authority to be exercised through Benches, dealt with the constitution and places of sitting of such Benches, enabled the Central Government to specify their territorial jurisdiction, and permitted transfer of a Member from one Bench to another.

Former Section 10: Constitution of Benches of Adjudicating Authority

(1) Subject to the provisions of this Act, -

(a) the jurisdiction of the Adjudicating Authority may be exercised by Benches thereof;

(b) a Bench may be constituted by the Chairperson of the Adjudicating Authority with two Members, as the Chairperson may deem fit;

(c) the Benches of the Adjudicating Authority shall ordinarily sit in the National Capital Territory of Delhi and at such other places as the Central Government may, in consultation with the Chairperson, by notification, specify;

(d) the Central Government shall, by notification, specify the areas in relation to which each Bench of the Adjudicating Authority may exercise jurisdiction.

(2) Notwithstanding anything contained in sub-section (1), the Chairperson may transfer a Member from one Bench to another Bench.

Why was Section 10 omitted?

Part VII of the Finance Act, 2021 reorganised the adjudication framework under the Benami law. Section 155 substituted Section 7, and Section 156 omitted Sections 8 to 17 from 1 July 2021. As a result, the former statutory provisions dealing with the composition, qualifications, Benches, procedure, tenure and related service matters of the earlier Adjudicating Authority structure ceased to operate.

What is the current Adjudicating Authority under the Benami Act?

Under the substituted Section 7, the competent authority authorised under Section 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 is the Adjudicating Authority for exercising the jurisdiction, powers and authority conferred by or under the Prohibition of Benami Property Transactions Act, 1988.

Meaning of key legal terms

Adjudicating Authority

For the Benami Act, the term refers to the Adjudicating Authority referred to in Section 7. After the 2021 amendment, this is the competent authority authorised under Section 5(1) of the SAFEMA, 1976.

Bench

In the former Section 10 framework, a Bench was a constituent sitting of the Adjudicating Authority through which its jurisdiction could be exercised. The specific statutory scheme for constitution of such Benches under Section 10 was omitted from 1 July 2021.

Jurisdiction

Jurisdiction means the legal authority of an adjudicatory body to hear and decide matters assigned to it. The former Section 10 expressly allowed territorial areas for each Bench to be specified by Central Government notification. That provision is no longer operative.

Important points

Section 10 is part of the Prohibition of Benami Property Transactions Act, 1988 as historically amended.
The former provision concerned Benches of the Adjudicating Authority.
Section 10 was omitted with effect from 1 July 2021.
The current Adjudicating Authority is governed primarily by the substituted Section 7 and the other operative provisions of the Act.
For present proceedings, readers should consult the latest consolidated text of the Act and current jurisdictional notifications rather than relying on the former Section 10 wording.

Related provisions on AAP Tax Law

For connected provisions, see Section 2 - Definitions, Section 3 - Prohibition of benami transactions, Section 4 - Prohibition of the right to recover property held benami, Section 5 - Property held benami liable to confiscation, Section 6 - Prohibition on re-transfer of property by benamidar, and Section 7 - Adjudicating Authority.

Official legal sources

For authoritative verification, consult the India Code page for the Prohibition of Benami Property Transactions Act, 1988 and the official consolidated Act PDF available through India Code. These sources reflect the omission of Section 10 from 1 July 2021.

Note: This article is intended for general legal information. Statutory provisions, notifications and jurisdictional arrangements may change, and the current official text should be checked for a specific matter.