UPSC 2017: 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 ?

Under Section 5 of the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016), any property found to be benami ‘shall be liable to be confiscated by the Central Government’, so statement 2 is correct. The definition of a benami transaction does not hinge on whether the real owner is aware of the arrangement, therefore statement 1 is incorrect. Sections 46-49 of the Act create an Appellate Tribunal above the Initiating Officer, Approving Authority and Adjudicating Authority, so an appellate mechanism does exist; hence statement 3 is wrong. Thus, only statement 2 is correct. ([moneycontrol.com](https://www.moneycontrol.com/news/business/personal-finance/benami-property-act-to-be-effectivenovember-1-2016-952814.html?utm_source=openai))