Benami Law: Key takeaways from the recent SC decision, and the path ahead

Prior to the 2016 amendment, Benami law was a paper tiger. The amendment infused life into it by introducing robust enforcement mechanism while significantly expanding the scope of benami transactions.

The issue of retrospective application of the amended law reached the Supreme Court in Ganpati Dealcom, where the Supreme Court initially held the unamended law to be unconstitutional and limited the application of the amended provisions to transactions undertaken post 2016. However, this ruling was later overturned in review, and the matter is currently pending before a regular bench.

Amidst this backdrop, the recent Supreme Court’s decision in Manjula provides important clarity. The Court applied the unamended provisions to the case, while holding that the 2016 amendments may operate retrospectively to the extent that they are procedural or curative, but not where they are penal in nature.

The judgment also adopts a stricter stance on the ‘fiduciary capacity’ exception, narrowing its applicability as a defence. Importantly, the Supreme Court reaffirmed that the real owner cannot enforce rights over property held benami.

The webinar will, inter alia, cover:

• Key findings by the Supreme Court and practical takeaways
• Application of the amended definition of ‘benami transaction’ post this ruling
• Scope and ambit of different exclusions under Benami Law 
• Impact on pending litigations including the Ganpati Dealcom dispute
• Emerging issues, grey areas, and unresolved questions

Speakers - 

• S Vasudevan, Executive Partner, LKS
• Mahendra Singh, Associate Partner, LKS