Benami law can’t be applied retrospectively: SC

• The Supreme Court recently declared the amendments introduced to the Benami law in 2016 as unconstitutional.
• Reason: Retrospective amendment can send a person to prison for 3 years even as it empowers the Centre to confiscate “any property” subject to a benami transaction.

Controversy over the 2016 Act

• The 2016 law amended the original Benami Act of 1988.
• Expanded the sections to 72 from a mere 9.
• Section 3(2): 3 years imprisonment for those who had entered into benami transactions between September 5, 1988 and October 25, 2016.
• A person can be imprisoned for a benami transaction entered into 28 years before the Section came into existence.
• Violates Article 20(1) of the Constitution.
• Section 5: “any property, which is subject matter of benami transaction, shall be liable to be confiscated by the Central Government”.
• The court held that it cannot be applied retrospectively.