Section 3 - Prohibition of benami transactions - Prohibition Of Benami Property Transactions Act, 1988

Prohibition of benami transactions. 3. (1) No person shall enter into any benami transaction. 2 [(2) xxxx] 3 [(2)] Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both. 4 [(3) Whoever enters into any benami transaction on and after the date of commencement of the Benami Transactions (Prohibition) Amendment Act, 2016, shall, notwithstanding anything contained in sub-section (2), be punishable in accordance with the provisions contained in Chapter VII.] 4 [(4) xxxx] ******************* Notes: 1. Old Sub Section (2) omitted vide Benami Transactions (Prohibition) Amendment Act, 2016 , before it was read as, (2) Nothing in sub-section (1) shall apply to- (a) the purchase of property by any person in the name of his wife or unmarried daughter and it shall be presumed, unless the contrary is proved, that the said property had been purchsed for the benefit of the wife or the unmarried daughter; (b) the securities held by a- (i) depository as a registered owner under sub-section (1) of section 10 of the Depositories Act, 1996; (ii) participant as an agent of a depository. Explanation.- The expressions depository and participant shall have the meanings respectively assingned ot them in clauses (e) and (g) of sub-section (1) of section 2 of the Depositories Act, 1996.] 2. Old Sub Section (3) renumbered as (2) vide Benami Transactions (Prohibition) Amendment Act, 2016 , 3. Inserted vide Benami Transactions (Prohibition) Amendment Act, 2016 4. Omitted vide Benami Transactions (Prohibition) Amendment Act, 2016 , before it was read as, (4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence under this section shall be non-cognizable and bailable.