Section 9 Benami Act: Qualifications for Chairperson and Members - Current Legal Status
Section 9 formed part of Chapter III of the Prohibition of Benami Property Transactions Act, 1988 after the extensive amendments made in 2016. The provision set out the service qualifications for appointment as Chairperson or Member of the Adjudicating Authority and also dealt with appointment by the Central Government and selection of the senior-most Member as Chairperson.
That statutory arrangement was subsequently changed. From 1 July 2021, the structure of the Adjudicating Authority was revised by the Finance Act, 2021. The present Section 7 provides that the competent authority authorised under section 5(1) of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 shall function as the Adjudicating Authority for purposes of the Benami law.
Historical text of Section 9
9. Qualifications for appointment of Chairperson and Members.
(1) A person shall not be qualified for appointment as the Chairperson or a Member of the Adjudicating Authority unless he -
(a) has been a member of the Indian Revenue Service and has held the post of Commissioner of Income-tax or equivalent post in that Service; or
(b) has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that Service.
(2) The Chairperson and other Members of the Adjudicating Authority shall be appointed by the Central Government in such manner as may be prescribed.
(3) The Central Government shall appoint the senior-most Member to be the Chairperson of the Adjudicating Authority.
What changed from 1 July 2021?
The Finance Act, 2021 substituted Section 7 and omitted Sections 8 to 17 of the Prohibition of Benami Property Transactions Act, 1988. As a result, the earlier provisions dealing with composition, qualifications, benches, service conditions and related institutional matters of the earlier Adjudicating Authority ceased to operate in their previous form.
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 acts as the Adjudicating Authority and exercises the jurisdiction, powers and authority conferred by or under the Benami Act.
Why the historical Section 9 still matters
The omitted provision may still be relevant when reading older orders, notifications, appointments, pleadings, commentary or proceedings referring to the pre-1 July 2021 institutional framework. For any present-day matter, however, the current text of the Act and the applicable notifications should be checked before relying on the former qualification criteria.
Related provisions
For the present statutory framework, readers may also refer to Section 7 - Adjudicating Authority, Section 8 - Composition of Authority (omitted), and Section 10 - Constitution of Benches (omitted).
Official legal sources
For authoritative verification, consult the current text of the Prohibition of Benami Property Transactions Act, 1988 on India Code and the Government of India page on the Competent Authority and Adjudicating Authority under the PBPT Act.
Legal note: This page is an informational reference to the statutory provision and its amendment history. For litigation, compliance or a transaction-specific issue, the current Act, rules, notifications and binding judicial decisions should be examined together.