Section 7 of PBPT Act : Section 7: Adjudicating Authority

Explanation using Example

Imagine a scenario where Mr. Sharma purchases a property, but the deed is in the name of his housekeeper, Ms. Gupta, with the understanding that she is holding it for him and has no real interest in it. This is a benami transaction, where the property is held by one person (Ms. Gupta) but the real owner is Mr. Sharma. The government suspects this to be a case of benami property and initiates an investigation.

In this situation, the Adjudicating Authority, as mentioned in Section 7 of The Prohibition of Benami Property Transactions Act, 1988, steps in. This authority, which is the same as the one designated under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, will conduct a thorough examination of the evidence presented by both parties. If the authority determines that the property is indeed held benami, it has the power to confiscate the property under the Act, thereby preventing Mr. Sharma from benefiting from the property that is in Ms. Gupta's name.