Page 57 - Union Budget_2019

Union Budget 2019

11.3 Rationalizing the provisions of the Prohibition of Benami Property Transactions Act (PBPT Act)
A) No prior approval from approving authority:

The existing provisions of Section 23 of PBPT Act provide that the Initiating Officer (IO), with the prior

approval of the Approving Authority, shall conduct any inquiry or investigation. The power is exercised by
the IO when no case is pending before him.

However, it is not expressly provided in the PBPT Act that prior approval shall not be required when the IO
has already initiated proceeding by issue of notice under Section 24(1) of PBPT Act (relating to attachment
of property involved in benami transactions)

In order to provide clarity on the same, it is proposed to amend provisions of Section 23 of PBPT Act that
no prior approval shall be required from Approving Authority in cases where notices are already issued
under section 24(1) by IO.

This amendment will take effect retrospectively from 1st November, 2016.

B) Commencement of time limit for attachment and passing order of property

As per the existing provisions in Section 24(3) and 24(4) of PBPT Act, which talks about the instances of

provisional attachment of property, the period for attachment of property/passing order for provisional
attachment shall commence from the date of issuing notice under Section 24(1) of PBPT Act.

However, with a view to rationalize the aforesaid provisions, it is proposed to amend Section 24 of PBPT
Act so as to provide that period of 90 days for the purpose of attachment of property and passing of order
shall commence from end of the month in which notice is issued under Section 24(1) of PBPT Act.

This amendment will take effect from 1st day of September, 2019.

C) Exclusions from time limit for passing order

The following provisions of the PBPT Act provides for time limit with respect to passing an order/ making

of reference:
Section Particulars

24(4) Passing of order by the Initiating Office

24(5) Making of reference to Adjudicating Authority by the Initiating Officer

26(7) Passing of order by the Adjudicating Authority

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