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2022 (12) TMI 568 - HC - Benami Property


Issues:
Challenge to provisional order of attachment under Prohibition of Benami Property Transactions Act, 1988.

Analysis:
1. Provisional Order of Attachment: The writ petition challenged the provisional order of attachment dated 27.12.2021 made by respondent No.2 under Section 24(4)(b)(1) of the Benami Property Act, attaching agricultural land. The transaction in question was dated 01.10.2016.

2. Interpretation of Benami Property Act: The court referred to previous judgments like Nexus Feeds Limited and Union of India v. Ganpati Dealcom Pvt. Ltd. to interpret the provisions of the Benami Property Act. The court in Nexus Feeds Limited held that the amended provisions of the Act are prospective and cannot be applied to transactions before 01.11.2016.

3. Supreme Court Decision: The Supreme Court, in Ganpati Dealcom Pvt. Ltd., declared Sections 3 and 5 of the Benami Property Act as unconstitutional from inception due to being overly broad and without adequate safeguards. The Court held that the Amendment Act of 2016 would create new provisions and offences, applicable prospectively.

4. Retroactive Application: The Supreme Court clarified that criminal provisions under the Act were arbitrary and incapable of application, thus the 2016 amendment could not retroactively apply to transactions before 25.10.2016. All prosecutions or confiscation proceedings prior to this date were quashed.

5. Final Decision: Based on the Supreme Court's ruling, the provisional attachment order dated 27.12.2021 was set aside and quashed, allowing the writ petition. The court emphasized that concerned authorities cannot initiate or continue criminal prosecution or confiscation proceedings for transactions before 25.10.2016.

6. Conclusion: The judgment clarified the interpretation and application of the Benami Property Act, emphasizing its prospective nature post the Amendment Act of 2016. It provided a detailed analysis of the unconstitutionality of certain provisions and their impact on past transactions, leading to the quashing of the provisional attachment order in question.

 

 

 

 

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