Criminal Offence
Essential ingredient—Mens rea is an essential ingredient of a criminal offence.
[Para 14.10]
Prohibition of Benami Property Transactions Act, 1988
Section 3(2)—Constitutional validity—Section 3(2) of the unamended 1988 Act is declared as unconstitutional for being manifestly arbitrary.
[Para 18]
Section 5—Constitutional validity—In rem forfeiture provision under Section 5 of the unamended Act of 1988, prior to the 2016 Amendment Act, was unconstitutional for being manifestly arbitrary.
[Para 18]
Benami Transactions (Prohibition) Amendment Act, 2016
Section 1—Nature of Act—2016 Amendment Act was not merely procedural, rather, prescribed substantive provisions.
[Para 18]
Section 3(2)—Constitutional validity—Section 3(2) of the 2016 Act is unconstitutional as it is violative of Article 20(1) of the Constitution of India
[Para 18]
Section 5—Applicability of provision—Whether prospective or retroactively—In rem forfeiture provision under Section 5 of the Act 2016 Act, being punitive in nature, can only be applied prospectively and not retroactively—Concerned authorities cannot initiate or continue criminal prosecution or confiscation proceedings for transactions entered into prior to the coming into force of the 2016 Act—As a consequence of the declaration, all such prosecutions or confiscation proceedings shall stand quashed.
[Para 18]