Sections 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These three sections answer the first questions about the law: what the Act is called, how far it reaches and from when, whether it sits alongside other laws, and what happens when it clashes with them. Section 1 deals with name, extent and commencement, section 60 says the Act adds to other laws, and section 67 says it prevails over any inconsistent law.
As per the consolidated text consulted, section 1 gives the Act its present name, the Prohibition of Benami Property Transactions Act, 1988, and says it extends to the whole of India. Section 60 says the Act is in addition to, and not in derogation of, any other law in force, save as the Act expressly provides. Section 67 says the Act has effect notwithstanding anything inconsistent in any other law in force. Read together, a benami matter can be touched by this Act and by other laws at the same time, and where they conflict this Act wins.
How the Act came to read the way it does
The text used for this article is a third-party consolidated copy of the Act as amended by the Benami Transactions (Prohibition) Amendment Act, 2016, checked against the Gazette of India copy of that amending Act (assent 10 August 2016, published on 11 August 2016). The consolidated copy carries 72 sections. Before the 2016 amendment the Act was called the Benami Transactions (Prohibition) Act, 1988 and was a short statute; the amending Act is a separate law of only 11 sections, and its section numbers are not the section numbers of the principal Act. This matters when you read the Act: "section 6 of the amending Act" and "section 6 of the principal Act" are different provisions. If you are testing a property purchase against these rules, a legal consultation on the title papers is a sensible first step.
The table below shows, at a glance, how the 2016 Amendment Act worked on the principal Act.
| Part of the principal Act | What the 2016 Amendment Act did |
|---|---|
| Section 1(1) | Substituted: it gives the present name, the Prohibition of Benami Property Transactions Act, 1988 |
| Sections 2, 5 and 6 | Substituted with new text |
| Section 3 | Amended: old sub-section (2) omitted, old (3) renumbered as (2), a new (3) inserted, old (4) omitted |
| Section 4(3) | Omitted |
| Sections 7 to 55 (Chapters III to VII) | Inserted: authorities, attachment and adjudication, the Appellate Tribunal, Special Courts, offences |
| Sections 56 to 71 (Chapter VIII) | Inserted, in place of the old sections 7 and 8 |
| Section 72 | The old section 9, renumbered; it repeals the 1988 Ordinance and saves what was done under it |
Sections 60 and 67 sit in Chapter VIII (Miscellaneous), which the 2016 Amendment Act inserted. Section 1 is the first section of Chapter I (Preliminary).
Section 1: name, extent and commencement
Section 1(1) reads: "This Act may be called the Prohibition of Benami Property Transactions Act, 1988." This is the sub-section the 2016 Amendment Act substituted. The earlier name appears in brackets at the top of the consolidated copy.
Section 1(2) says the Act "extends to the whole of India". The consolidated copy shows a few words dropped after "India" in the form of "[***]". The copy does not say what those words were or when they were dropped, so this article does not describe them. Separately, section 56(2) still refers to "the State of Jammu and Kashmir" as printed; both points are quoted as they appear and neither is explained here.
Section 1(3) is the original 1988 commencement wording: "The provisions of sections 3, 5 and 8 shall come into force at once, and the remaining provisions of this Act shall be deemed to have come into force on the 19th day of May, 1988." Two cautions apply. First, "sections 3, 5 and 8" are the sections as numbered in 1988, not the present sections 3, 5 and 8, which are different provisions. Second, the sub-section speaks only of the 1988 Act. It does not tell you when the 2016 changes started to apply.
The 2016 changes take effect under the amending Act's own section 1(2): the amending Act "shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint", and different dates may be appointed for different provisions. In other words, the 2016 changes were brought into force by notification; the date is not in the sources consulted. If a transaction date matters to your case, take the notification itself and confirm which provisions it brought in and when. Section 3(3) and section 53 also look to "the date of commencement" of the 2016 Amendment Act; our article on section 3 explains how.
The consolidated copy also prints the Statement of Objects and Reasons of the 1988 Bill after section 1. It is history, not law. It records that the Ordinance of 19 May 1988 was issued to implement the Law Commission's recommendations and barred suits and defences based on benami rights.
Section 60: other laws are not barred
Section 60 reads: "The provisions of this Act shall be in addition to, and not, save as hereinafter expressly provided, in derogation of any other law for the time being in force."
This is a statement that the Act is cumulative. The Act does not displace the rest of the legal system. A benami transaction can therefore raise issues under this Act and, side by side, under other laws that apply to the same facts. The words "save as hereinafter expressly provided" mean that wherever the Act itself says it displaces or repeals something, that express provision controls. Section 56, for instance, repeals named provisions of other laws. Our article on sections 56 and 72 covers that.
Section 67: overriding effect
Section 67 reads: "The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force."
A "notwithstanding" clause decides conflicts. If a provision in some other law says one thing and this Act says something inconsistent, this Act prevails. Notice the word "inconsistent": the clause does not wipe out other laws, only the part that cannot stand with this Act.
Sections 60 and 67 side by side
| Point | Section 60 | Section 67 |
|---|---|---|
| Question answered | Can other laws apply as well? | Which law wins in a conflict? |
| Answer | Yes: the Act is in addition to other laws | This Act, to the extent of the inconsistency |
| Key words | "in addition to, and not ... in derogation of" | "notwithstanding anything inconsistent therewith" |
| Exception | "save as hereinafter expressly provided" | None stated |
The two sections do not contradict each other. Section 60 keeps other laws alive; section 67 settles who prevails where a real conflict exists.
A practical example
Meera Nair buys a flat in Pune in the name of her brother-in-law, Dinesh, who agrees to hold it for her. Dinesh later sells the flat to a third party. Meera's property law rights, her brother-in-law's duties, and the income-tax position can each be examined under their own laws, because section 60 keeps those laws operating. Where a rule in an older law would help Meera claim the flat back, section 67 and the rest of the Act decide whether that rule can still be used. Whether such a flat is "benami property" depends on the definitions in section 2, which are covered in our article on benami transactions and the benamidar.
Other laws named in the Act
Where this Act refers to other laws, the Income-tax Act, 1961, the Code of Civil Procedure, 1908 and the Code of Criminal Procedure, 1973 among them, the references are quoted as printed in the consolidated text. Check the current income-tax, procedural and penal law for the corresponding provisions before you act.
Later amendments to the Act are not in the sources consulted. Check the current official text for any change after 10 August 2016.
Need help with benami property questions?
If you hold property in someone else's name, or you are buying property whose title history looks unusual, we can review the documents and explain where the Act may apply. You can start with a legal consultation to discuss the facts before taking any step.
Key takeaways
- Section 1(1) gives the present name of the Act; section 1(2) states its extent as the whole of India.
- Section 1(3) is the 1988 commencement wording; the 2016 changes came into force by notification, and the date is not in the sources consulted.
- Section 60 makes the Act additional to other laws, save as the Act expressly provides.
- Section 67 gives the Act overriding effect over any inconsistent law.
- The 2016 Amendment Act substituted some sections, inserted others and renumbered the old section 9 as section 72.
Read next
- Overview of the Benami Transactions Prohibition Act
- Section 2: benami transaction, benamidar and beneficial owner defined
- Section 3: prohibition of benami transactions
- Sections 56 and 72: repeal and saving
Disclaimer: Based on a third-party consolidated text of the Prohibition of Benami Property Transactions Act, 1988 as amended by the Benami Transactions (Prohibition) Amendment Act, 2016, checked against the Gazette of India copy of that amending Act (11 August 2016), as consulted on 2 October 2026. The commencement notification, the rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.