On November 08, 2016, Narendra Modi led NDA government took a revolutionary step by demonetizing 500 and 1000 rupee note. Later in his speech, PM Modi in Pune announced that he will now take action against Benami Property holders. Benami Property is the major source of corruption in India.
HOW WILL BENAMI SAMPATTI ACT WILL CURB CORRUPTION?
Prime Minister Narendra Modi has always remained unpredictable in his decisions over important issues related to national interest. As per him, the government will soon be bringing new reforms in Benami Transaction Act 1988 in order to curb corruption. The latest changes were done in November 2016. The rule allows 3-7 years rigorous jail and a penalty of 25% of the property based on standard market rate.
The government may bring some more laws in order to probe, confiscate and convict criminals under this crime. Since independence, huge some of black money has been utilized using Benami method by purchasing and registering properties under someone else’s name while the financier was someone else. It would be under chain of steps taken by the government to crack black money holders after the demonetization move.
FUTURE STEPS THAT CAN BE TAKEN BY THE GOVERNMENT:
As per sources, the government has notified government institutions like Ministry of Finance, Income Tax Department and anti corruption bureau in order to scan properties that have possibility in falling under the Benami Sampatti act. Nearly 200 teams of investigating officers have been formed to investigate under the act.
After cash, black money is mostly utilized in properties under unknown names. The properties that are purchased through black money or on someone else’s name will be confiscated under the law. The government can bring laws to increase the jail term or can stretch its arm for catching the property holders.
A good amount of Benami Sampatti is in hold of politicians, bureaucrats, contractors, Land Mafias and Hawala agents.
ADVANTAGES THROUGH BENAMI ACT:
The property confiscated under Benami act will be of the government and the government can utilize it for public welfare. The rate of land and properties will fall down due to this step. Many corrupt leaders and bureaucrats will come under the scanners which will over all help the people of India directly as well as indirectly.