UPSC CSE Prelims
Question 90
With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements :
- A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
- Properties held benami are liable for confiscation by the Government.
- The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: The amended benami law allows government confiscation of benami property after statutory proceedings and includes adjudication plus appeal mechanisms. A hidden transaction without the owner’s knowledge is not automatically exempt.
Statement/Pair-wise Analysis:
Statement/Item 1: Incorrect - Lack of knowledge of the ostensible titleholder is not a blanket exemption from the statutory definition of benami arrangements.
Statement/Item 2: Correct - Benami properties can be attached and confiscated through procedures established under the Act.
Statement/Item 3: Incorrect - The statute includes an Adjudicating Authority and Appellate Tribunal; it is wrong to say no appellate mechanism exists.
Option-wise Analysis:
A: Incorrect - includes incorrect statement/item 1; omits correct statement/item 2.
B: Correct - includes all and only the true statements/items.
C: Incorrect - includes incorrect statement/items 1, 3; omits correct statement/item 2.
D: Incorrect - includes incorrect statement/item 3.