Sections 6 and 57 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.
Two sections of the Act deal with property that moves after it becomes a benami issue. Section 6 stops the benamidar from handing the property back to the beneficial owner, and section 57 deals with transfers made after a notice under section 24. Both turn certain transfers into nullities, but in different ways.
As per the consolidated text consulted, section 6 says no benamidar shall re-transfer benami property to the beneficial owner or any other person acting on his behalf, and a re-transfer made in breach is deemed null and void; sub-section (3) excepts a transfer made in accordance with section 190 of the Finance Act, 2016. Section 57 says that a transfer of property made after a notice under section 24 is ignored for the proceedings under the Act and, if the property is later confiscated under section 27, is deemed null and void.
How these sections came in
Section 6 was substituted by the Benami Transactions (Prohibition) Amendment Act, 2016 (its section 8 put in new sections 5 and 6). Section 57 was inserted by the same Act as part of Chapter VIII. The wording below is checked against the Gazette of India copy of that Act (assent 10 August 2016) and matches. Before 2016, the old section 6 was a different provision altogether, headed "Act not to apply in certain cases", and it is not the law under the present text. The 2016 changes were brought into force by notification; the date is not in the sources consulted.
If you are dealing with a property that has been or may be handed back to the person who paid for it, take advice on the timeline before any transfer is signed; a legal due diligence review of the transfer chain is the usual first step.
Section 6(1): no re-transfer by the benamidar
"No person, being a benamidar shall re-transfer the benami property held by him to the beneficial owner or any other person acting on his behalf."
The benamidar, who holds property for another, is told not to give it back. This can look odd, because returning the property seems the natural way to undo the arrangement. The Act closes that route. The terms come from section 2: the benamidar is the person in whose name the benami property is held (section 2(10)), and the beneficial owner is the person for whose benefit it is held (section 2(12)); see our article on those definitions.
The prohibition covers two kinds of recipient: the beneficial owner himself, and "any other person acting on his behalf". A re-transfer to a nominee, agent or relative who is acting for the beneficial owner is caught in the same way.
Section 6(2): the consequence
"Where any property is re-transferred in contravention of the provisions of sub-section (1), the transaction of such property shall be deemed to be null and void."
A re-transfer in breach does not just attract a penalty; it is treated as having no legal effect. The text does not say who may rely on this or in what proceeding. It simply says the transaction "shall be deemed to be null and void".
Section 6(3): the exception tied to the Finance Act, 2016
"The provisions of sub-sections (1) and (2) shall not apply to a transfer made in accordance with the provisions of section 190 of the Finance Act, 2016."
This is quoted as printed. The sections consulted do not describe section 190 of the Finance Act, 2016 or say what it provides, and this article does not either. If you think a transfer might fall within this exception, read that section of the Finance Act itself and confirm its current position.
Section 57: transfers after a notice under section 24
The section reads: "Notwithstanding anything contained in the Transfer of the Property Act, 1882 or any other law for the time being in force, where, after the issue of a notice under section 24, any property referred to in the said notice is transferred by any mode whatsoever, the transfer shall, for the purposes of the proceedings under this Act, be ignored and if the property is subsequently confiscated by the Central Government under section 27, then, the transfer of the property shall be deemed to be null and void."
Printing point. The section says "the Transfer of the Property Act, 1882". This is how it is printed in both the consolidated copy and the gazette. The name is given here as printed; check the current law for the Transfer of Property Act, 1882.
The section works in two steps.
- While the proceedings continue. Once a notice under section 24 has been issued, any transfer of the property named in it, "by any mode whatsoever", is to be "ignored" for the purposes of the proceedings under the Act. The proceedings go on as if the transfer had not been made.
- If confiscation follows. If the property is later confiscated under section 27, the transfer is "deemed to be null and void".
"By any mode whatsoever" is wide. A sale, a gift, a mortgage or any other transfer is covered if it is a transfer of the property. The opening words, "notwithstanding anything contained in the Transfer of the Property Act, 1882 or any other law", mean the section overrides ordinary transfer law. For the transfer-law background see our posts on benami transactions and property transfer and on the doctrine of lis pendens.
| Point | Section 6 | Section 57 |
|---|---|---|
| Who acts | The benamidar | Any transferor of the noticed property |
| Trigger | A re-transfer to the beneficial owner or a person acting for him | A transfer after a section 24 notice |
| Effect | Deemed null and void | Ignored for the proceedings; deemed null and void if confiscated under section 27 |
| Exception | Transfer under section 190 of the Finance Act, 2016 | None stated in the section |
Who is affected
- Benamidars who are asked to return property to the person who paid.
- Beneficial owners who hope to regularise matters by taking the property back in their own names.
- Buyers and lenders who deal with property after a notice has been issued. A transfer in their favour can be ignored in the proceedings and can later be void. Look for any notice before you pay; our article on section 24 covers the notice itself.
Practical example
Neha Khanna holds a flat in Chandigarh in her name, but the money came from her uncle, Mahesh Tiwari. After the Act's changes, Mahesh asks her to sign it over to his son, who is acting for him. Under section 6(1), Neha, as benamidar, may not re-transfer it to Mahesh or to a person acting on his behalf, and under section 6(2) the transfer would be deemed null and void. Separately, suppose a notice under section 24 has already been issued for the flat and Neha sells it to Rohan Das. Under section 57, the sale is ignored for the proceedings, and if the flat is later confiscated under section 27, the sale is deemed null and void. Rohan, as buyer, should have checked for a notice before paying.
Other laws and later amendments
Section 57 names the Transfer of the Property Act, 1882, and section 6 names section 190 of the Finance Act, 2016; both are quoted as printed. Check the current law for the corresponding provisions. Later amendments to the Act are not in the sources consulted; check them before relying on this article.
Need help with a transfer of property that may be benami?
Whether you are a buyer concerned about a notice or a family member asked to sign a re-transfer, the dates and the papers decide the outcome. Our legal due diligence team can check the chain of ownership and the payment trail before you sign.
Key takeaways
- Section 6(1) bars a benamidar from re-transferring benami property to the beneficial owner or a person acting on his behalf.
- Section 6(2) deems such a re-transfer null and void.
- Section 6(3) excepts a transfer made in accordance with section 190 of the Finance Act, 2016, as printed.
- Section 57 ignores, for the proceedings, a transfer made after a section 24 notice, and makes it void if the property is later confiscated under section 27.
- The transfer need not be a sale: "by any mode whatsoever".
Read next
- Section 5: benami property liable to confiscation
- Section 24: show-cause notice and provisional attachment
- Section 27: confiscation and vesting of benami property
- Doctrine of lis pendens: section 52 of the Transfer of Property Act
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.