Sections 7-11 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.
The Adjudicating Authority is the body that decides, under this Act, whether property is benami and whether it should be confiscated. Sections 7 to 11 say who appoints it, how many members it has, who is qualified, how it sits in Benches and how it conducts its proceedings.
As per the consolidated text consulted, the Central Government appoints one or more Adjudicating Authorities by notification (section 7). Each consists of a Chairperson and at least two other Members (section 8). Members come from the Indian Revenue Service or the Indian Legal Service (section 9). The Authority may act through Benches constituted by the Chairperson with two Members (section 10) and is not bound by the Code of Civil Procedure, 1908, but is guided by natural justice (section 11).
How these sections came in
Sections 7 to 11 are in Chapter III (Authorities). Chapter III was inserted by the Benami Transactions (Prohibition) Amendment Act, 2016, in its section 9, which inserted sections 7 to 55 in all. The words below are checked against the Gazette of India copy of that Act (assent 10 August 2016). The 2016 changes were brought into force by notification; the date is not in the sources consulted. The Adjudicating Authority is defined in section 2(1) as the authority appointed under section 7; see our article on the other definitions in section 2.
If you are the subject of a notice that will go before this body, an early legal dispute resolution review of how your case will be heard is worthwhile, because the Authority regulates much of its own procedure.
Section 7: appointment
"The Central Government shall, by notification, appoint one or more Adjudicating Authorities to exercise jurisdiction, powers and authority conferred by or under this Act."
Two things stand out. The appointing body is the Central Government, and it does so by notification. And the plural is allowed: there may be one Adjudicating Authority or several. The powers it exercises are those "conferred by or under this Act", so its role is limited to what the Act gives it.
Section 8: composition
"An Adjudicating Authority shall consist of a Chairperson and at least two other Members." The floor is therefore three persons: the Chairperson plus two Members. The text sets no upper number.
Section 9: qualifications and appointment
Section 9(1) says a person is not qualified for appointment as Chairperson or Member unless he:
- (a) has been a member of the Indian Revenue Service and has held the post of Commissioner of Income-tax or equivalent post in that Service; or
- (b) has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that Service.
Section 9(2) says the Chairperson and other Members "shall be appointed by the Central Government in such manner as may be prescribed". The manner is left to rules; the rules are not in the sources consulted, so this article gives no procedure. Section 9(3) says the Central Government "shall appoint the senior-most Member to be the Chairperson of the Adjudicating Authority".
Section 10: Benches
Section 10(1) is "subject to the provisions of this Act" and has four clauses.
| Clause | What it says |
|---|---|
| (a) | The jurisdiction of the Adjudicating Authority may be exercised by Benches |
| (b) | A Bench may be constituted by the Chairperson with two Members, as the Chairperson may deem fit |
| (c) | Benches shall ordinarily sit in the National Capital Territory of Delhi and at such other places as the Central Government may, in consultation with the Chairperson, by notification, specify |
| (d) | The Central Government shall, by notification, specify the areas in relation to which each Bench may exercise jurisdiction |
Section 10(2) adds that, notwithstanding sub-section (1), the Chairperson may transfer a Member from one Bench to another Bench.
In practice this means that a Bench is made up of the Chairperson and two Members, but the Chairperson decides the composition. Clause (c) points to Delhi as the ordinary seat. The places for other Benches and the territorial areas of each Bench are fixed by Central Government notifications, which are not in the sources consulted. Check the notification to find out which Bench has jurisdiction over your property.
Section 11: the Authority regulates its own procedure
"The Adjudicating Authority shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908, but shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Authority shall have powers to regulate its own procedure."
There are three parts.
- Not bound by the Code of Civil Procedure, 1908. The Authority does not have to follow the procedure of the Code. This reference is quoted as printed; check the current procedural law for the corresponding provisions.
- Guided by the principles of natural justice. The text names the principle but does not list its content in this section. Other sections of the Act, such as the notice and hearing provisions, supply specifics; see our articles on adjudication under section 26 and on the powers and benches of the Appellate Tribunal.
- Powers to regulate its own procedure, "subject to the other provisions of this Act". Where the Act is specific, the Act governs; where it is silent, the Authority may decide how to proceed.
Where the Authority fits in the larger scheme
The Adjudicating Authority is not the first step. Under the Act, the Initiating Officer issues a notice and may provisionally attach property, and the matter then goes to the Adjudicating Authority; see our articles on section 24 and on the Initiating Officer and Approving Authority. The term of the Chairperson and Members, removal and staff come after in sections 12 to 17; see our article on those sections 12 to 17. Appeals from the Authority go to the Appellate Tribunal, which is built in Chapter V.
The money-laundering connection
Section 71 of the Act lets the Central Government provide, by notification, that until the Adjudicating Authorities are appointed and the Appellate Tribunal is established under this Act, the Adjudicating Authority appointed under sub-section (1) of section 6 of the Money-Laundering Act, 2002 and the Appellate Tribunal established under section 25 of that Act may discharge the functions of the Adjudicating Authority and Appellate Tribunal under this Act. Whether any such notification exists is not in the sources consulted. For the other Act, see our introduction to the Prevention of Money-laundering Act, 2002 and our article on the Adjudicating Authority under that Act.
Practical example
Gaurav Sethi receives a notice about a flat in Faridabad and learns that it will be decided by an Adjudicating Authority. He wants to know who sits on it. Section 8 tells him it has a Chairperson and at least two other Members. Section 9 tells him the qualifications: past service in the Indian Revenue Service as Commissioner of Income-tax or equivalent, or in the Indian Legal Service as Joint Secretary or equivalent. Section 10 tells him a Bench of three may hear the case and that the notification specifying Bench areas will tell him which Bench covers Faridabad. Section 11 tells him the Authority is not bound by the Code of Civil Procedure but must follow natural justice.
Other laws and later amendments
The Act refers to the Code of Civil Procedure, 1908, the Income-tax Act, 1961 and the Money-Laundering Act, 2002; each is quoted as printed. Check the current income-tax, procedural and penal law for the corresponding provisions. Later amendments to the Act are not in the sources consulted; check them.
Need help with a matter before the Adjudicating Authority?
A notice that will be decided by this body needs a reply grounded in the documents and the timeline. Our legal dispute resolution team can go through the papers with you and explain what the Act says at each stage.
Key takeaways
- The Central Government appoints one or more Adjudicating Authorities by notification (section 7).
- Each has a Chairperson and at least two other Members (section 8).
- Qualification comes from the Indian Revenue Service or the Indian Legal Service (section 9).
- A Bench may be constituted by the Chairperson with two Members, and Benches ordinarily sit in Delhi and other notified places (section 10).
- The Authority is not bound by the Code of Civil Procedure, 1908, but is guided by natural justice (section 11).
Read next
- Sections 12 to 17: term, removal and staff of the Adjudicating Authority
- Section 26: adjudication of benami property
- Section 2: property, fair market value, authorities and other definitions
- Adjudicating Authority under PMLA
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.