3. Prohibition of benami transactions.—(1) No person shall enter into any benami transaction.
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[(2)] Whoever enters into any benami transaction shall be punishable with imprisonment for a term
which may extend to three years or with fine or with both.
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[(3) Whoever enters into any benami transaction on and after the date of commencement of the
Benami Transactions (Prohibition) Amendment Act, 2016 (43 of 2016) shall, notwithstanding anything
contained in sub-section (2), be punishable in accordance with the provisions contained in Chapter VII.]
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4. Prohibition of the right to recover property held benami.—(1) No suit, claim or action to
enforce any right in respect of any property held benami against the person in whose name the property is
held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such
property.
(2) No defence based on any right in respect of any property held benami, whether against the person
in whose name the property is held or against any other person, shall be allowed in any suit, claim or
action by or on behalf of a person claiming to be the real owner of such property.
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[5. Property held benami liable to confiscation.—Any property, which is subject matter of benami
transaction, shall be liable to be confiscated by the Central Government.
6. Prohibition on re-transfer of property by benamidar.—(1) No person, being a benamidar shall
re-transfer the benami property held by him to the beneficial owner or any other person acting on his
behalf.
(2) Where any property is re-transferred in contravention of the provisions of sub-section (1), the
transaction of such property shall be deemed to be null and void.
(3) The provisions of sub-sections (1) and (2) shall not apply to a transfer made in accordance with
the provisions of section 190 of the Finance Act, 2016 (28 of 2016).]