24. Notice and attachment of property involved in benami transaction.—(1) Where the Initiating
Officer, on the basis of material in his possession, has reason to believe that any person is a benamidar in
respect of a property, he may, after recording reasons in writing, issue a notice to the person to show
cause within such time as may be specified in the notice why the property should not be treated as benami
property.
(2) Where a notice under sub-section (1) specifies any property as being held by a benamidar referred
to in that sub-section, a copy of the notice shall also be issued to the beneficial owner if his identity is
known.
(3) Where the Initiating Officer is of the opinion that the person in possession of the property held
benami may alienate the property during the period specified in the notice, he may, with the previous
approval of the Approving Authority, by order in writing, attach provisionally the property in the manner
as may be prescribed, for a period not exceeding ninety days from the date of issue of notice under
sub-section (1).
(4) The Initiating Officer, after making such inquires and calling for such reports or evidence as he
deems fit and taking into account all relevant materials, shall, within a period of ninety days from the date
of issue of notice under sub-section (1),—
(a) where the provisional attachment has been made under sub-section (3),—
(i) pass an order continuing the provisional attachment of the property with the prior approval
of the Approving Authority, till the passing of the order by the Adjudicating Authority under
sub-section (3) of section 26; or
(ii) revoke the provisional attachment of the property with the prior approval of the
Approving Authority;
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(b) where provisional attachment has not been made under sub-section (3),—
(i) pass an order provisionally attaching the property with the prior approval of the Approving
Authority, till the passing of the order by the Adjudicating Authority under sub-section (3) of
section 26; or
(ii) decide not to attach the property as specified in the notice, with the prior approval of the
Approving Authority.
(5) Where the Initiating Officer passes an order continuing the provisional attachment of the property
under sub-clause (i) of clause (a) of sub-section (4) or passes an order provisionally attaching the property
under sub-clause (i) of clause (b) of that sub-section, he shall, within fifteen days from the date of the
attachment, draw up a statement of the case and refer it to the Adjudicating Authority.
25. Manner of service of notice.—(1) A notice under sub-section (1) of section 24 may be served on
the person named therein either by post or as if it were a summons issued by a Court under the Code of
Civil Procedure, 1908 (5 of 1908).
(2) Any notice referred to in sub-section (1) may be addressed—
(i) in case of an individual, to such individual;
(ii) in the case of a firm, to the managing partner or the manager of the firm;
(iii) in the case of a Hindu undivided family, to Karta or any member of such family;
(iv) in the case of a company, to the principal officer thereof;
(v) in the case of any other association or body of individuals, to the principal officer or any
member thereof;
(vi) in the case of any other person (not being an individual), to the person who manages or
controls his affairs.
26. Adjudication of benami property.—(1) On receipt of a reference under sub-section (5) of
section 24, the Adjudicating Authority shall issue notice, to furnish such documents, particulars or
evidence as is considered necessary on a date to be specified therein, on the following persons, namely:—
(a) the person specified as a benamidar therein;
(b) any person referred to as the beneficial owner therein or identified as such;
(c) any interested party, including a banking company;
(d) any person who has made a claim in respect of the property:
Provided that the Adjudicating Authority shall issue notice within a period of thirty days from the
date on which a reference has been received:
Provided further that the notice shall provide a period of not less than thirty days to the person to
whom the notice is issued to furnish the information sought.
(2) Where the property is held jointly by more than one person, the Adjudicating Authority shall
make all endeavours to serve notice to all persons holding the property:
Provided that where the notice is served on anyone of the persons, the service of notice shall not be
invalid on the ground that the said notice was not served to all the persons holding the property.
(3) The Adjudicating Authority shall, after—
(a) considering the reply, if any, to the notice issued under sub-section (1);
(b) making or causing to be made such inquiries and calling for such reports or evidence as it
deems fit; and
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(c) taking into account all relevant materials,
provide an opportunity of being heard to the person specified as a benamidar therein, the Initiating
Officer, and any other person who claims to be the owner of the property, and, thereafter, pass an order—
(i) holding the property not to be a benami property and revoking the attachment order; or
(ii) holding the property to be a benami property and confirming the attachment order, in all
other cases.
(4) Where the Adjudicating Authority is satisfied that some part of the properties in respect of which
reference has been made to him is benami property, but is not able to specifically identify such part, he
shall record a finding to the best of his judgment as to which part of the properties is held benami.
(5) Where in the course of proceedings before it, the Adjudicating Authority has reason to believe that
a property, other than a property referred to it by the Initiating Officer is benami property, it shall
provisionally attach the property and the property shall be deemed to be a property referred to it on the
date of receipt of the reference under sub-section (5) of section 24.
(6) The Adjudicating Authority may, at any stage of the proceedings, either on the application of any
party, or suo motu, strike out the name of any party improperly joined or add the name of any person
whose presence before the Adjudicating Authority may be necessary to enable him to adjudicate upon and
settle all the questions involved in the reference.
(7) No order under sub-section (3) shall be passed after the expiry of one year from the end of the
month in which the reference under sub-section (5) of section 24 was received.
(8) The benamidar or any other person who claims to be the owner of the property may either appear
in person or take the assistance of an authorised representative of his choice to present his case.
Explanation.—For the purposes of sub-section (8), authorised representative means a person
authorised in writing, being—
(i) a person related to the benamidar or such other person in any manner, or a person regularly
employed by the benamidar or such other person as the case may be; or
(ii) any officer of a scheduled bank with which the benamidar or such other person maintains an
account or has other regular dealings; or
(iii) any legal practitioner who is entitled to practice in any civil court in India; or
(iv) any person who has passed any accountancy examination recognised in this behalf by the Board;
or
(v) any person who has acquired such educational qualifications as the Board may prescribe for this
purpose.
27. Confiscation and vesting of benami property.—(1) Where an order is passed in respect of any
property under sub-section (3) of section 26 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:
Provided that 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:
Provided further that the confiscation of the property shall be made in accordance with such
procedure as may be prescribed.
(2) Nothing in sub-section (1) shall apply to a property held or acquired by a person from the
benamidar for adequate consideration, prior to the issue of notice under sub-section (1) of section 24
without his having knowledge of the benami transaction.
(3) Where an order of confiscation has been made under sub-section (1), 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.
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(4) 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.
(5) Where no order of confiscation is made upon the proceedings under this Act attaining finality, no
claim shall lie against the Government.
28. Management of properties confiscated.—(1) The Administrator shall have the power to receive
and manage the property, in relation to which an order of confiscation under sub-section (1) of section 27
has been made, in such manner and subject to such conditions, as may be prescribed.
(2) The Central Government may, by order published in the Official Gazette, notify as many of its
officers as it thinks fit, to perform the functions of Administrators.
(3) The Administrator shall also take such measures, as the Central Government may direct, to
dispose of the property which is vested in the Central Government under sub-section (3) of section 27, in
such manner and subject to such conditions as may be prescribed.
29. Possession of the property.—(1) Where an order of confiscation in respect of a property under
sub-section (1) of section 27, has been made, the Administrator shall proceed to take the possession of the
property.
(2) 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 referred to in clause (a), 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.