Why did the Supreme Court recall its order striking down provisions of the 2016 amendments to the Benami Act, 1988? | In Focus podcast

In Focus by The Hindu

Last week, the Supreme Court recalled its judgement of August 23, 2022, wherein it had struck down certain provisions of the Benami Transactions (Prohibition) Amendment Act of 2016. Through the 2016 Act, the government had amended the original legislation, the Prohibition of Benami Property Transactions Act, 1988.

The 2016 law had expanded the original law from nine sections to 72 sections. In 2016, a three-judge Bench led by Chief Justice N.V. Ramana had declared as unconstitutional Sections 3 (2) and 5 of the 2016 Act.

Section 3(2) mandates three years of imprisonment for those who had entered into benami transactions between September 5, 1988, and October 25, 2016—that is, a person could be jailed for a benami transaction done 28 years before the Section even came into existence.

The other provision that was struck down, Section 5, states that “any property, which is subject matter of benami transaction, shall be liable to be confiscated by the Central Government.”

What was the Supreme Court’s reasoning in its 2022 judgement when it struck down these provisions? What is the rationale for the Review Bench to recall the earlier order and refer the case for fresh adjudication? What is at stake for the general public in this case?

Guest: Amit Pai, Advocate on Record at the Supreme Court of India.

Host: G. Sampath, Social Affairs Editor, The Hindu.

Edited by Sharmada Venkatasubramanian.