What is the procedure for the confiscation of the property when an adjudication order passed under Section 26 holds it to be a Benami property?

Ans. Section 27 provides for the confiscation and vesting of benami property as under:

a. Where an order is passed in respect of any property under Section 26(3) holding such property to be a benami property, the Adjudicating Authority shall, after giving an opportunity of being heard to the person concerned, make an order confiscating the property held to be a benami property.

b. Where an appeal has been filed against the order of the Adjudicating Authority, the confiscation of property shall be made subject to the order passed by the Appellate Tribunal under Section 46.

c. The confiscation order as above cannot be made if property adjudged benami property in order under Section 26(3) was held or acquired

• by a person from the benamidar
• for adequate consideration,
• prior to the issue of show cause notice under Section 24(1)
• without his having knowledge of the benami transaction.

d. Where an order of confiscation has been made as above, all the rights and title in such property shall vest absolutely in the Central Government free of all encum­brances, and no compensation shall be payable in respect of such confiscation.

e. Any right of any third person created in such property with a view to defeat the purposes of this Act shall be null and void.

f. Where no order of confiscation is made upon the proceedings under this Act attaining finality, no claim shall lie against the government.

Section 28(1) provides that the Administrator shall have the power to receive and manage the property in relation to which an order of confiscation under Section 27(1) has been made, in such manner and subject to such conditions, as may be prescribed.

Section 29 stipulates the procedure to be followed by the Administrator for taking possession of confiscated property. The Administrator shall:

a. by notice in writing, order within seven days of the date of the service of notice to any person, who may be in possession of the benami property, to surrender or deliver possession thereof to the Administrator or any other person duly authorised in writing by him in this behalf;

b. in the event of non-compliance of the order in (a) above, or if in his opinion, taking over of immediate possession is warranted, for the purpose of forcibly taking over possession, requisition the service of any police officer to assist him and it shall be the duty of the officer to comply with the requisition.