Prohibition of Benami Property Transactions Act, 1988

Section 59: Power of Central Government to Issue Directions

Section 59 authorises the Central Government to issue orders, instructions and directions for the proper administration of the Prohibition of Benami Property Transactions Act, 1988, while expressly protecting independent decision-making in individual cases.

Section 59 at a glance

The Central Government may issue administrative orders, instructions or directions.
It may require a person to furnish information for proper administration of the Act.
Directions may be based on territorial area, classes of persons, classes of cases or another specified criterion.
No direction can require an authority to decide a particular case in a particular manner.
No direction can interfere with the discretion of the Adjudicating Authority.

What does Section 59 of the Benami Act provide?

The provision appears in Chapter VIII, "Miscellaneous", of the Prohibition of Benami Property Transactions Act, 1988. It creates a statutory mechanism through which the Central Government can guide the administration of the Act, but it does not permit executive instructions to control the result of a specific adjudication.

Statutory text of Section 59

59. Power of Central Government to issue directions, etc.

(1) The Central Government may, from time to time, issue such orders, instructions or directions to the authorities or require any person to furnish information as it may deem fit for the proper administration of this Act and such authorities and all other persons employed in execution of this Act shall observe and follow the orders, instructions and directions of the Central Government.

(2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have regard to any one or more of the following criteria, namely:

(a) territorial area;

(b) classes of persons;

(d) any other criterion that may be specified by the Central Government in this behalf.

(3) No orders, instructions or directions under sub-section (1) shall be issued so as to:

(a) require any authority to decide a particular case in a particular manner; or

(b) interfere with the discretion of the Adjudicating Authority in the discharge of its functions.

Meaning and scope of Section 59

Sub-section (1) gives the Central Government a general supervisory and administrative power. The object is uniform and effective administration of the Act. Authorities and persons engaged in implementing the Act are required to follow valid orders, instructions and directions issued under this provision.

The power also extends to requiring information from any person when the Central Government considers such information necessary for proper administration of the Act. The provision therefore supports administrative coordination, information gathering and consistent implementation.

Criteria for issuing directions under Section 59(2)

Sub-section (2) clarifies that directions may be structured according to objective administrative criteria. These include territorial area, classes of persons and classes of cases. The Central Government may also specify another relevant criterion.

Important limitation under Section 59(3)

The most important safeguard is contained in sub-section (3). The Central Government cannot use Section 59 to command an authority to decide a particular case in a predetermined manner. It also cannot interfere with the statutory discretion of the Adjudicating Authority.

Practical effect: Section 59 supports administrative supervision, not case-specific adjudicatory control. General directions may guide implementation of the Act, but the merits of an individual proceeding must remain for the competent statutory authority to decide in accordance with law.

Current name of the legislation

The legislation was originally enacted as the Benami Transactions (Prohibition) Act, 1988. Following the 2016 amendments, its short title is the Prohibition of Benami Property Transactions Act, 1988. Accordingly, Section 59 is best described as Section 59 of the Prohibition of Benami Property Transactions Act, 1988.