UPSC Prelims 2017 · GS Paper I
Question 20: Polity and Governance
With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements :
- 1.A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
- 2.Properties held benami are liable for confiscation by the Government.
- 3.The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct ?
AnswerUPSC’s answer is (b).
Property held benami is liable to confiscation by the Government under the Act, so Statement 2 is right. Statement 1 is wrong: the amended Act (in force from November 2016) treats a transaction as benami even when the real owner is unaware of it or denies knowledge of the ownership. Statement 3 is wrong: the Act names the Initiating Officer, Approving Authority, Administrator and Adjudicating Authority, and also provides an Appellate Tribunal, with a further appeal to the High Court. Remember: confiscation yes; appeal route yes.
- 1. A transaction is still benami even if the owner is unaware of or denies knowledge of it.
- 2. Benami property can be confiscated by the Government.
- 3. The Act provides an Adjudicating Authority and an Appellate Tribunal.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: A transaction is still benami even if the owner is unaware of or denies knowledge of it.
- Then, if you were sure statement 3 is not correct, (d) goes: it includes 3.
What you needed to know: The Act provides an Adjudicating Authority and an Appellate Tribunal.
Only (b) is left. You didn’t need statement 2.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: lack of awareness does not stop a transaction being benami under the amended Act.
- (b) Right: only statement 2, confiscation of benami property, is correct.
- (c) Wrong: statements 1 and 3 are both false.
- (d) Wrong: statement 3 is false, since an appellate mechanism exists.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2017, General Studies Paper I, Series A. The paper on upsc.gov.in.