Supreme Court Reinstates Benami Transactions Law

The Supreme Court of India has recalled its August 2022 judgment that declared certain provisions of the Benami Transactions Prohibition Act, 1988, as unconstitutional. This decision was made after the Court acknowledged that the issue of constitutional validity had not been properly addressed during the original proceedings. Chief Justice D.Y. Chandrachud noted that the challenge to the unamended Act was not raised and emphasized that constitutional validity can only be determined when the provision is under challenge. The review petition was filed by the Union government, which argued that the previous ruling had unsettled decades of legal principles. The case is now set for fresh adjudication by a newly assigned bench. This development could potentially impact ongoing prosecutions related to benami transactions.