Section 28 of the PBPT Act: Management of Confiscated Property
Section 28 governs the receipt, management and disposal of property that has been confiscated under Section 27 of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act). The provision operates through an Administrator notified by the Central Government and is supplemented by the Prohibition of Benami Property Transactions Rules, 2016.
Meaning and scope of Section 28
Section 28 applies after a confiscation order is made under Section 27(1). Once confiscation is ordered, the property vests in the Central Government under Section 27(3), and the Administrator becomes responsible for receiving and managing it in the prescribed manner. The Administrator may also dispose of the property when directed by the Central Government.
For this purpose, the term Administrator refers to an officer notified by the Central Government to perform the statutory functions assigned under the Act. In practice, the Act and the 2016 Rules provide the framework for custody, record-keeping, preservation and eventual disposal of confiscated assets.
Section 28 - Management of properties confiscated
(1) The Administrator shall have the power to receive and manage the property, in relation to which an order of confiscation under sub-section (1) of section 27 has been made, in such manner and subject to such conditions, as may be prescribed.
(2) The Central Government may, by order published in the Official Gazette, notify as many of its officers as it thinks fit, to perform the functions of Administrators.
(3) The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is vested in the Central Government under sub-section (3) of section 27, in such manner and subject to such conditions as may be prescribed.
Rules 7, 8 and 9: receipt, management and disposal
Rule 7 - Receipt of confiscated property
At the time of receiving confiscated property, the Administrator must ensure proper identification of the property by reference to the particulars contained in the confiscation order made under Section 27(1).
Rule 8 - Management of confiscated property
Rule 8 lays down practical custody and management requirements. Where removal of property from the place of attachment is impracticable, or the cost of removal would be disproportionate to its value, the Administrator is to arrange proper maintenance and custody at the existing location. Cash, securities, bullion, jewellery and other valuables are to be kept in prescribed safe custody, and appropriate registers and receipts are to be maintained.
Rule 9 - Disposal of confiscated property
Where the Central Government directs disposal of property vested in it under Section 27(3), the Administrator is required to arrange disposal in accordance with Rule 9 and the applicable procedure referred to in the Rules.
How Section 28 relates to Sections 27 and 29
Section 27 deals with confiscation and vesting of benami property in the Central Government. Section 28 then governs the management and disposal stage after confiscation. Section 29 deals with taking possession of the confiscated property.
This statutory sequence is important: confiscation and vesting arise under Section 27, administration and disposal are addressed by Section 28, and possession is dealt with by Section 29.
Official legal resources
For the latest official text, readers may refer to the India Code page for the Prohibition of Benami Property Transactions Act, 1988 and the Income Tax Department portal for the Prohibition of Benami Property Transactions Rules, 2016 and related notifications.