Section 10 - Substitution of new Chapter VIII for sections 7 and 8 - Benami Transactions (Prohibition) Amendment Act, 2016

Substitution of new Chapter VIII for sections 7 and 8. 10. For sections 7 and 8 of the principal Act, the following shall be substituted, namely:- CHAPTER VIII MISCELLANEOUS Repeal of provisions of certain Acts. 56. (1) Sections 81, 82 and 94 of the Indian Trusts Act, 1882, (2 of 1882.) section 66 of the Code of Civil Procedure, 1908 (5 of 1908.) and section 281A of the Income-tax Act, 1961, (43 of 1961) are hereby repealed. (2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall affect the continued operation of section 281A of the Income-tax Act, 1961 (43 of 1961) in the State of Jammu and Kashmir. Certain transfers to be null and void. 57. Notwithstanding anything contained in the Transfer of the Property Act, 1882 (4 of 1882.) or any other law for the time being in force, where, after the issue of a notice under section 24, any property referred to in the said notice is transferred by any mode whatsoever, the transfer shall, for the purposes of the proceedings under this Act, be ignored and if the property is subsequently confiscated by the Central Government under section 27, then, the transfer of the property shall be deemed to be null and void. Exemption. 58. (1) The Central Government may, by notification, exempt any property relating to charitable or religious trusts from the operation of this Act. (2) Every notification issued under sub-section (1) shall be laid before each House of Parliament. Power of Central Government to issue directions, etc. 59. (1) The Central Government may, from time to time, issue such orders, instructions or directions to the authorities or require any person to furnish information as it may deem fit for the proper administration of this Act and such authorities and all other persons employed in execution of this Act shall observe and follow the orders, instructions and directions of the Central Government. (2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have regard to any one or more of the following criteria, namely:- (a) territorial area; (b) classes of persons; (c) classes of cases; and (d) any other criterion that may be specified by the Central Government in this behalf. (3) No orders, instructions or directions under sub-section (1) shall be issued so as to- (a) require any authority to decide a particular case in a particular manner; or (b) interfere with the discretion of the Adjudicating Authority in the discharge of its functions. Application of other laws not barred. 60. The provisions of this Act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of any other law for the time being in force. Offences to be non-cognizable. 61. Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974.) an offence under this Act shall be non-cognizable Offences by companies. 62. (1) Where a person committing contravention of any of the provisions of this Act or of any rule, direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to, the company, for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. (2) Nothing contained in sub-section (1), shall render any person liable to punishment if he proves that the contravention took place without his knowledge. (3) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, the director, manager, secretary or other officer shal1 also be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly. Explanation .-For the purposes of this section,- (a) company means a body corporate, and includes- (i) a firm; and (ii) an association of persons or a body of individuals whether incorporated or not; and (b) director , in relation to- (i) a firm, means a partner in the firm; (ii) any association of persons or a body of individuals, means any member controlling the affairs thereof. Notice, etc., not to be invalid on certain grounds. 63. No notice, summons, order, document or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid, or shall be deemed to be invalid merely by reason of any mistake, defect or omission in the notice, summons, order, document or other proceeding if the notice, summons, order, document or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act. Protection of action taken in good faith. 64. No prosecution, suit or other proceeding shall lie against the Government or any officer of the Government or the Appellate Tribunal or the Adjudicating Authority established under this Act, for anything done or intended to be done in good faith under this Act. Transfer of pending cases. 65. (1) Every suit or proceeding in respect of a benami transaction pending in any Court (other than a High Court) or Tribunal or before any forum on the date of the commencement of this Act shall stand transferred to the Adjudicating Authority or the Appellate Tribunal, as the case may be, having jurisdiction in the matter. (2) Where any suit, or other proceeding stands transferred to the Adjudicating Authority or the Appellate Tribunal under sub-section (1),- (a) the court, Tribunal or other forum shall, as soon as may be, after the transfer, forward the records of the suit, or other proceeding to the Adjudicating Authority or the Appellate Tribunal, as the case may be; (b) the Adjudicating Authority may, on receipt of the records, proceed to deal with the suit, or other proceeding, so far as may be, in the same manner as in the case of a reference made under sub-section (5) of section 24, from the stage which was reached before the transfer or from any earlier stage or de novo as the Adjudicating Authority may deem fit. Proceedings, etc., against legal representative. 66. (1) Where a person dies during the course of any proceeding under this Act, any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased. (2) Any proceeding which could have been taken against the deceased if he had survived may be taken against the legal representative and all the provisions of this Act, except sub-section (2) of section 3 and the provisions of Chapter VII, shall apply accordingly. (3) Where any property of a person has been held benami under sub-section (3) of section 26, then, it shall be lawful for the legal representative of the person to prefer an appeal to the Appellate Tribunal, in place of the person and the provisions of section 46 shall, so far as may be, apply, or continue to apply, to the appeal. Act to have overriding effect. 67. The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force. Power to make rules. 68. (1) The Central Government may, by notification, make rules for carrying out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely- (a) manner of ascertaining the fair market value under clause 16 of section 2; (b) the manner of appointing the Chairperson and the Member of the Adjudicating Authorities under sub-section (2) of section 9; (c) the salaries and allowances payable to the Chairperson and the Members of the Adjudicating Authority under sub-section (1) of section 13; (d) the powers and functions of the authorities under sub-section (2) of section 18; (e) other powers of the authorities under clause (f) of sub-section (1) of section 19; (f) the form and manner of furnishing any information to the authority under sub-section (2) of section 21; (g) the manner of provisional attachment of property under sub-section (3) of section 24; (h) the procedure for confiscation of benami property under the second proviso to sub-section (1) of section 27; (i) the manner and conditions to receive and manage the property under sub-section (1) of section 28; (j) the manner and conditions of disposal of property vested in the Central Government under sub-section (3) of section 28; (k) the salaries and allowances payable to and the other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal under sub-section (1) of section 33; (l) the manner of prescribing procedure for removal of Chairperson or Member under sub-section (4) of section 35; (m) the salaries and allowances payable to and the other terms and conditions of service of the officers and employees of the Appellate Tribunal under sub-section (3) of section 39; (n) any power of the Appellate Tribunal under clause (i) of sub-section (2) of section 40; (o) the form in which appeal shall be filed and the fee for filing the appeal under sub-section (1) of section 46; (p) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules. Laying of rules and notifications before Parliament. 69. Every rule made and notification issued under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rules or notifications, as the case may be, both Houses agree that the rules or notifications, as the case may be, should not be made or issued, the rule or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification, as the case may be. Power to remove difficulties. 70. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty. (2) No order shall be made under this section after the expiry of two years from the commencement of this Act. (3) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament. Transitional provision. 71. The Central Government may, by notification, provide that until the Adjudicating Authorities are appointed and the Appellate Tribunal is established under this Act, the Adjudicating Authority appointed under sub-section (1) of section 6 of the Money-Laundering Act, 2002 (15 of 2003.) and the Appellate Tribunal established under section 25 of that Act may discharge the functions of the Adjudicating Authority and Appellate Tribunal, respectively, under this Act. .