New Delhi, aug 23 (AIR News): The Supreme Court  has struck down one of the provisions of the Benami Transactions (Prohibition) Act of 1988, which provides for the punishment of a maximum jail term of three years or a fine or both for those indulging in benami’ transactions.

The apex court termed the provision unconstitutional on the ground of being manifestly arbitrary.  A bench comprising Chief Justice N V Ramana and Justices C T Ravikumar and Hima Kohli said.

The court hold section 3(2) of the Benami Transactions (Prohibition) Act, 1988 as unconstitutional.
The verdict came on the appeal of the Centre challenging the Calcutta High Court judgement in which it was held that the amendment made in the 1988 Act in 2016 would be applicable with prospective effect.