News & Media 24th Aug 2022

Experts analyse SC’s latest order on Benami transactions

Authors

Naresh Thacker Partner | Mumbai

Latest Thought Leadership

Alerts & Updates 27th May 2024

Trade Update – May 27, 2024

Read More
Articles 27th May 2024

Revamping India’s Insolvency Framework: Challenges, Trends, and Strategic Improvements

Read More
News & Media 27th May 2024

Cost inflation index for FY25 higher than last fiscal’s

Read More
Alerts & Updates 24th May 2024

SEBI issues a flurry of changes to tackle material price movement due to market rumours and to ensure a level playing field

Read More

Post Supreme Court ruling, all the criminal prosecution or confiscation proceedings initiated under the Benami Transaction Prohibition Act before October 25, 2016, will now be treated as null and void. However, proceedings initiated after demonetisation, for cash deposited in benami bank accounts could see more and more people coming forward to accept the guilt and pay the penalty to end the matter. At the same time, Income Tax Department may reopen cases involving Benami transactions.

Against this backdrop, Naresh Thacker, Partner at Economic Laws Practice (ELP) has been quoted by BusinessLine in their article titled ‘Experts analyze SC’s latest order on Benami transactions’. He says, “Any cash deposits in the Benami accounts under the un-amended act, i.e before 2016, were also prohibited under the Benami Transaction Act of 1988, except if such deposits were in the name of the wife or unmarried daughter. However, this exception was deleted in the 2016 amendment.” Further to this, Pulkit Poddar, Associate Partner with ELP highlights that in a recent Madras HC ruling it was observed that once demonetized, currency notes do not constitute legal tender for forming the part of ‘consideration’ under the Benami Transactions Act.

Read the comment and detailed article here: Click here