SC recalls 2022 verdict terming benami law provisions 'unconstitutional'

In a significant development, the Supreme Court on Friday recalled its 2022 verdict that had declared as unconstitutional two provisions of the law on prohibition of benami property transactions that restrains such deals and acquisition of properties by authorities. Allowing the Centre's review of the August 23, 2022 verdict, a bench Chief Justice of India (CJI) D Y Chandrachud, Justices P S Narasimha and Manoj Misra recalled the judgement delivered by a three-judge bench headed by former CJI N V Ramana. In its August 2022 verdict, the top court had then held that Sections 3(2) and 5 of the Prohibition of Benami Property Transactions Act, 1988 being "manifestly arbitrary" were unconstitutional. While Section 3 of the Act deals with prohibition of benami (a property held by a person through proxies) transactions, Section 5 pertains to property of benami liable to acquisition. On Friday, the top court agreed with the submissions of Solicitor General Tushar Mehta, who appeared for the