Section 26 of PBPT Act : Section 26: Adjudication Of Benami Property
PBPT Act
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Explanation using Example
Imagine a situation where Rohan, a businessman, purchases a property in the name of his domestic helper, Meena, without her knowledge. The property is actually paid for by Rohan using his funds, but the deed and records show Meena as the owner. This arrangement is made to evade taxes and hide Rohan's ownership. This is a classic example of a benami transaction.
Upon suspicion, the tax authorities initiate an investigation into the property's ownership. They refer the case to the Adjudicating Authority under the Prohibition of Benami Property Transactions Act. The Authority, following Section 26 of the Act, issues a notice to Meena (the benamidar), Rohan (the beneficial owner), the bank involved in the transaction, and any other claimant to the property, askin...
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