3. Penalty for benami transaction.—(1) Where any person enters into a benami transaction in
order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to
creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter
into the benami transaction, shall be guilty of the offence of benami transaction.
(2) Whoever is found guilty of the offence of benami transaction referred to in sub-section (1) shall be
punishable with rigorous imprisonment for a term which shall not be less than one year, but which may
extend to seven years and shall also be liable to fine which may extend to twenty-five per cent. of the fair
market value of the property.
54. Penalty for false information.—Any person who is required to furnish information under this
Act knowingly gives false information to any authority or furnishes any false document in any proceeding
under this Act, shall be punishable with rigorous imprisonment for a term which shall not be less than six
months but which may extend to five years and shall also be liable to fine which may extend to ten per
cent. of the fair market value of the property.
55. Previous sanction.—No prosecution shall be instituted against any person in respect of any
offence under sections 3, 53 or section 54 without the previous sanction of the Board.]