Section 24 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.
Section 24 is where a benami case begins in practice. The Initiating Officer issues a show-cause notice, a copy goes to the beneficial owner if known, the property can be provisionally attached for up to ninety days with approval, and within the same ninety days the Initiating Officer must decide the next step and, in most cases, refer the matter to the Adjudicating Authority.
As per the consolidated text consulted, the Initiating Officer who has reason to believe that a person is a benamidar may, after recording reasons in writing, issue a notice to show cause why the property should not be treated as benami property. A copy goes to the beneficial owner if his identity is known. Provisional attachment, with the previous approval of the Approving Authority, can last for a period not exceeding ninety days from the date of the notice. Within ninety days the Initiating Officer passes one of four orders, and where the attachment stands he must refer the case to the Adjudicating Authority within fifteen days of the attachment.
How section 24 came in
Section 24 is in Chapter IV, headed "Attachment, Adjudication and Confiscation". The copy consulted does not print that chapter heading; it is in the Gazette of India copy of the amending Act, and it covers sections 24 to 29. The section was inserted by the Benami Transactions (Prohibition) Amendment Act, 2016 (assent 10 August 2016) and the text is checked against that gazette. The 2016 changes were brought into force by notification; the date is not in the sources consulted.
A notice under this section is the document you must answer. If you have received one, or you hold property that may be named in one, a legal dispute resolution review of the notice, the time given and the property described is the first step.
Sub-section (1): the show-cause notice
"Where the Initiating Officer, on the basis of material in his possession, has reason to believe that any person is a benamidar in respect of a property, he may, after recording reasons in writing, issue a notice to the person to show cause within such time as may be specified in the notice why the property should not be treated as benami property."
Four conditions or features:
- Who acts: the Initiating Officer (an Assistant Commissioner or a Deputy Commissioner as defined by section 2(19)).
- On what basis: "material in his possession" and "reason to believe" that the person is a benamidar.
- Reasons recorded in writing before the notice.
- The time to reply is whatever is "specified in the notice". The sub-section does not fix a number of days.
The notice is addressed to the person said to be the benamidar. How a notice is served is in section 25; see our article on sections 25 and 63.
Sub-section (2): copy to the beneficial owner
Where the notice specifies property as being held by a benamidar, "a copy of the notice shall also be issued to the beneficial owner if his identity is known". If the beneficial owner is not known, the sub-section does not require a copy.
Sub-section (3): provisional attachment
"Where the Initiating Officer is of the opinion that the person in possession of the property held benami may alienate the property during the period specified in the notice, he may, with the previous approval of the Approving Authority, by order in writing, attach provisionally the property in the manner as may be prescribed, for a period not exceeding ninety days from the date of issue of notice under sub-section (1)."
The elements are: the Initiating Officer's opinion that the person in possession may alienate the property during the notice period, the previous approval of the Approving Authority, an order in writing, provisional attachment, and a period not exceeding ninety days from the date of issue of the notice. The manner of attachment is left to rules, which are not in the sources consulted. "Attachment" means the prohibition of transfer, conversion, disposition or movement of property by an order under the Act (section 2(5)).
Sub-section (4): the order within ninety days
The Initiating Officer, "after making such inquires and calling for such reports or evidence as he deems fit and taking into account all relevant materials", shall, within ninety days from the date of issue of the notice, do one of the following:
| Situation | Order the Initiating Officer may pass | Approval |
|---|---|---|
| (a) Provisional attachment already made under (3) | (i) Continue the provisional attachment till the order of the Adjudicating Authority under section 26(3) | Prior approval of the Approving Authority |
| (a) Provisional attachment already made under (3) | (ii) Revoke the provisional attachment | Prior approval of the Approving Authority |
| (b) No provisional attachment made | (i) Provisionally attach the property till the order of the Adjudicating Authority under section 26(3) | Prior approval of the Approving Authority |
| (b) No provisional attachment made | (ii) Decide not to attach the property as specified in the notice | Prior approval of the Approving Authority |
Printing slip. The consolidated copy prints "inquires" where "inquiries" is meant. It is quoted here as printed.
So there are four possible orders, and each needs the prior approval of the Approving Authority. The ninety days run from the date of issue of the notice, not from the date of attachment. Notice also that continued attachment under (a)(i) and fresh attachment under (b)(i) both last "till the passing of the order by the Adjudicating Authority under sub-section (3) of section 26". Our article on section 26 deals with that order.
Sub-section (5): the reference
Where the Initiating Officer passes an order continuing the provisional attachment under (4)(a)(i) or provisionally attaching under (4)(b)(i), "he shall, within fifteen days from the date of the attachment, draw up a statement of the case and refer it to the Adjudicating Authority".
The reference is therefore tied to the two orders that leave the property attached. The text of sub-section (5) is silent on the two orders that end attachment, namely revocation and a decision not to attach. For the body that receives the reference, see our article on sections 7 to 11.
The time line at a glance
| Step | Time limit |
|---|---|
| Notice to show cause | Time specified in the notice |
| Provisional attachment under (3) | Not exceeding ninety days from the date of issue of the notice |
| Order under (4) | Within ninety days from the date of issue of the notice |
| Statement of the case under (5) | Within fifteen days from the date of the attachment |
Effects on the property and on buyers
After a notice under section 24 is issued, section 57 says a transfer of the property named in the notice is ignored for the proceedings and is deemed null and void if the property is later confiscated under section 27; see our article on sections 6 and 57. A buyer or lender should therefore look for a notice before paying. The disclosure of benami proceedings in company accounts is a separate subject; see our post on benami property under Schedule III.
Practical example
On the basis of material in his possession, an Initiating Officer believes that Sandeep Rawat holds a shop in Kanpur as benamidar for Lata Mishra, whose identity is known. After recording reasons in writing, he issues a show-cause notice to Sandeep and, under sub-section (2), a copy to Lata. Fearing a sale, he provisionally attaches the shop with the previous approval of the Approving Authority, for a period not exceeding ninety days from the notice. Within the ninety days, he passes an order continuing the attachment, again with prior approval. Within fifteen days of the attachment, he draws up a statement of the case and refers it to the Adjudicating Authority.
Other laws and later amendments
Section 24 itself names no other law. Where other sections refer to the Income-tax Act, 1961 or procedural codes, check the current law for the corresponding provision. Later amendments to the Act are not in the sources consulted; check them.
Need help with a show-cause notice under the Act?
A section 24 notice gives you a limited time to reply, and the ninety-day clock starts when it is issued. If you want the notice, the reasons and the attachment order read against the section, our legal dispute resolution team can go through them with you.
Key takeaways
- The Initiating Officer needs reason to believe and must record reasons in writing before issuing the notice.
- A copy goes to the beneficial owner if his identity is known.
- Provisional attachment needs the Approving Authority's previous approval and cannot exceed ninety days from the date of the notice.
- Within ninety days there are four possible orders, each with prior approval.
- Where attachment stands, a statement of the case goes to the Adjudicating Authority within fifteen days of the attachment.
Read next
- Sections 25 and 63: service of notice and defects in notice
- Section 26: adjudication of benami property
- Section 5: benami property liable to confiscation
- Benami property under Schedule III: proceedings and beneficiaries
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.