Section 15 of the Benami Act: Member to act as Chairperson in certain circumstances
Section 15 was introduced as part of the 2016 restructuring of the law then commonly referred to as the Benami Transactions (Prohibition) Act. The statute is now titled the Prohibition of Benami Property Transactions Act, 1988. Before its omission, Section 15 dealt with temporary arrangements for the Chairperson of the Adjudicating Authority when the office was vacant or when the Chairperson was unable to perform the functions of the office.
The present Act follows a different institutional arrangement. Section 7 now provides that the competent authority authorised under section 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 shall be the Adjudicating Authority for purposes of the Benami Act. Sections 8 to 17, including former Section 15, were omitted from 1 July 2021.
What did former Section 15 provide?
The provision contained two situations. The first dealt with a vacancy in the office of Chairperson. The second dealt with the Chairperson being temporarily unable to discharge the functions of office.
Former Section 15(1) - vacancy in the office of Chairperson
Where the office of Chairperson became vacant because of death, resignation or another reason, the senior-most Member was to act as Chairperson of the Adjudicating Authority until the newly appointed Chairperson entered office.
Former Section 15(2) - temporary inability of the Chairperson
Where the Chairperson was unable to discharge functions because of absence, illness or another cause, the senior-most Member was to discharge the functions of Chairperson until the Chairperson resumed duties.
Why was Section 15 omitted?
The Finance Act, 2021 changed the institutional structure of the Adjudicating Authority under the Prohibition of Benami Property Transactions Act. Section 7 was substituted and sections 8 to 17 were omitted with effect from 1 July 2021. As a result, the earlier statutory framework dealing with the composition, Chairperson, Members, benches, service conditions and interim discharge of the Chairperson's functions ceased to operate under those provisions.
Meaning of key expressions
Adjudicating Authority: Under the current 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 Benami Act.
Benami transaction: Section 2(9) contains the statutory definition of a benami transaction. It covers specified transactions or arrangements where property is held in one person's name but consideration is provided by another for that person's benefit, subject to statutory exceptions, and also covers certain fictitious-name, ownership-denial and untraceable-consideration situations.
Benami property: Section 2(8) defines benami property as property that is the subject matter of a benami transaction and includes the proceeds from such property.
Official legal sources
For the current consolidated statute, see the Prohibition of Benami Property Transactions Act, 1988 on India Code. The Department of Revenue also identifies administration and legislative work relating to the Benami law among its official functions; see the Department of Revenue - Wealth Tax and Other Taxes.
Related provisions
The provisions immediately surrounding former Section 15 were part of the earlier Adjudicating Authority framework. Former Section 14 dealt with removal of the Chairperson and Members, while former Section 16 dealt with vacancies not invalidating proceedings. Both provisions were also omitted from 1 July 2021. Current provisions concerning authorities begin with Section 18 - Authorities and jurisdiction.
This article is intended as a general legal reference. Always consult the current statutory text, amendments, rules, notifications and applicable judicial decisions for a specific matter.