Section 8 of the Benami Act: Composition of Adjudicating Authority
Section 8 of the Prohibition of Benami Property Transactions Act, 1988 formerly dealt with the composition of the Adjudicating Authority. The provision is no longer operative: it was omitted with effect from 1 July 2021.
What did Section 8 originally provide?
The earlier Section 8 provided for the composition of the Adjudicating Authority under the Benami law. Before its omission, the provision stated:
This formulation formed part of the changes introduced by the Benami Transactions (Prohibition) Amendment Act, 2016, which substantially amended the 1988 Act and renamed it as the Prohibition of Benami Property Transactions Act, 1988.
What is the law after 1 July 2021?
From 1 July 2021, Section 8 is omitted. The present Section 7 identifies the Adjudicating Authority by reference to the competent authority authorised under section 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976. That authority exercises the jurisdiction, powers and authority conferred under the Prohibition of Benami Property Transactions Act, 1988.
Therefore, for current proceedings, readers should refer primarily to Section 7 - Adjudicating Authority, the adjudication procedure under the Act, and the current official text rather than relying on the pre-2021 composition provision.
Meaning of key legal terms
Adjudicating Authority
Under Section 2(1) of the Act, "Adjudicating Authority" means the Adjudicating Authority referred to in Section 7. In practical terms, it is the statutory authority that considers references and adjudicates whether property is benami in accordance with the procedure laid down in the Act.
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.
Benami transaction
Section 2(9) contains the detailed statutory definition of a "benami transaction". Broadly, it covers specified transactions or arrangements in which property is held in one person's name while consideration is provided by another for the latter's benefit, subject to the statutory exceptions and other categories set out in the provision.
Why the omission of Section 8 matters
- The old composition rule is historical law and should not be cited as the current structure of the Adjudicating Authority.
- Current references to the Adjudicating Authority must be read with the amended Section 7 and related provisions.
- Older judgments, notices, pleadings and commentaries may still refer to the former Chairperson-and-Members structure because that was the statutory position before 1 July 2021.
- For any live matter, the latest text of the Act and applicable notifications should be checked before relying on an earlier version.
Official legal source
The official consolidated text on India Code records Section 8 as omitted by the Finance Act, 2021 with effect from 1 July 2021. See the Prohibition of Benami Property Transactions Act, 1988 - official India Code PDF.
Related provisions
For a fuller understanding of Chapter III of the Act, see the internal links below:
- Section 7 - Adjudicating Authority
- Section 9 - Qualifications for appointment of Chairperson and Members - historical provision; Section 9 was also omitted from 1 July 2021.
- Section 10 - Constitution of Benches of Adjudicating Authority - historical provision; Section 10 was also omitted from 1 July 2021.
Note: This page is a statutory information article. For a specific proceeding, use the current Act, rules, notifications and judicial decisions applicable to the facts of the case.