HC quashed proceedings under Benami Transactions (Prohibition) Amendment Act, 2016 for transactions prior to 25-10-2016

Brightcareer Consultancy Services Pvt. Ltd. Vs Union of India (Bombay High Court)

HC quashed proceedings under Benami Transactions (Prohibition) Amendment Act, 2016 for transactions prior to 25-10-2016

1. The petitioner in the present case, apart from challenging the constitutional validity of the provisions of the Benami Transactions (Prohibition) Amendment Act, 2016, has also challenged the order dated 23^rd December 2019, whereby a reference was made by respondent No.2 to respondent No.3 in terms of Clause (5) of section 24 of the Amendment Act, 2016 and the order dated 31^st December 2019 by virtue of which the concerned authority had issued a provisional order of attachment,.

2. Learned Senior Counsel for the petitioner states that during the pendency of the present petition, and in the interregnum, the Apex Court in the case of Union of India & Anr. Vs. Ganpati Dealcom Pvt. Ltd.¹ has, inter-alia, held sections 3 and 5 of the Benami Transactions (Prohibition) Amendment Act, 2016 as having only prospective operation. On a perusal of the judgment and order dated 23^rd August 2022 passed by the Apex Court, it can be seen that the Apex Court has directed the authorities not to initiate or continue criminal prosecution or confiscation proceedings for transactions entered into prior to coming into force of the Act, 2016, i.e., 25-10-2016 and that as a consequence of the above declaration, all such prosecutions or confiscation proceedings would stand quashed.

3. In the present case, the alleged date of transaction, as contained and refected in the show cause notice, dated 31^st December 2019 would show the same as ‘30^th May 2013’ and ‘19^th August 2013’ which Mr. Suresh Kumar admits are much before coming into force of the Amendment Act, 2016.

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