Can a Benamidar sell away Benami property to avoid confiscation? Can the property be confiscated from the purchaser?

Ans. Section 27(2) of the PBPT Act protects the interests of a genuine purchaser/holder of property by providing that Adjudicating Authority shall not confiscate property adjudicated to be benami property if such property was held or acquired by a person from the Benamidar for adequate consideration prior to the issue of notice by Initiating Officer and without his having knowledge of the Benami transaction.

Further, Section 57 of the PBPT Act provides that where, after the issue of a notice under Section 24, any property referred to in the said notice is transferred by any mode whatsoever, such transfer shall, for the purposes of the proceedings under this Act, be ignored. If such property is subsequently confiscated by the Central Government then the transfer of such property shall be deemed to be null and void.