Supreme Court rules that benami law cannot be applied retrospectively

General

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Aug 24, 2022

The Supreme Court on Tuesday ruled the amended Benami Act, which came into effect on November 1, 2016, applied only prospectively, besides declaring “unconstitutional” one of the provisions of the law dealing with a three-year jail term and a penalty. The jail provision was quashed on grounds of it being “manifestly arbitrary” — something that will provide relief to individuals and companies. Harsh punishments have been awarded under this provision.The court also set aside all action taken before the implementation of the Benami Transactions (Prohibition) Amendment Act, 2016.

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