Supreme Court Reverses Verdict on Benami Property Law

The Supreme Court has recalled its 2022 verdict that declared two provisions of the Benami Property Transactions Act unconstitutional. This decision allows for a fresh adjudication on the Act's validity. Previously, these sections were deemed arbitrary but were not initially challenged in court.

In a significant legal twist, the Supreme Court on Friday withdrew its 2022 decision that had deemed two sections of the Benami Property Transactions Act unconstitutional. The court's move supports the Centre's appeal for a review, overturning the earlier judgment which it now considers premature.

A bench led by Chief Justice of India D Y Chandrachud found merit in the Centre's argument, represented by Solicitor General Tushar Mehta. The Centre had challenged the prior ruling by asserting that the two scrutinized provisions were not subject to proper examination by the previous court.

This development means the civil appeal that led to the 2022 ruling will undergo a new hearing. The court has also clarified that the Benami law, amended in 2016 to address proxy property holdings, was never meant to be retrospective, an aspect that will now be reconsidered.

(With inputs from agencies.)