Lok Sabha passed the proposed Bill to check benami transactions, to further curb black money transactions made under fictitious names. According to the 1988 BT Act, ‘Benami Transaction’ is defined as “a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person”. In May 2015, the Lok Sabha introduced an Amendment Bill to add other transactions which qualify as ‘benami’ such as property transactions where

1. The transaction is made in a fictitious name
2. The owner is not aware of denies knowledge of the ownership of the property
3. (or) The person providing the consideration for the property is not traceable

The Bill also looks to form respective authorities and an Appellate Tribunal to deal with such transactions, and further specifies the penalty for entering into benami transactions as rigorous imprisonment of one to seven years, and a fine up to 25% of the fair market value of the benami property.