A person holding Benami property shall be liable to punishable offence with rigorous imprisonment up to seven years along with fine up to 25 percent of value of the property.
According to Benami Transaction (Prohibition) Act, 2017 penalty for benami transactions has been explained under Section 51 of the Act.
Section 51. Penalty for Benami Transactions:
Sub-Section 1. Where any person enters into a benami transactions or holds benami property in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into the banami transaction, shall be guilty of an offence of benami transaction.
Sub-Section 2. Whoever is found guilty of the offence of benami transaction or holding benami property referred to in sub-section (1) shall be punishable with rigorous imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine which may extend to twenty-five percent of the fair market value of the property.
Section 52. Penalty for false information
Any person or any officer, who is required to furnish information under this Act, knowingly gives false information to any authority or furnishes any false document in any proceeding under this Act shall be punishable with rigorous imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which may extend to ten percent of the fair market value of the property.
Section 53. Previous sanction
No prosecution shall be instituted against any person in respect of any offence under section 51 or section 52 without the previous sanction of the Board.
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