New Delhi: The Delhi High Court Monday referred to a larger bench a petition alleging that the government has failed to appoint a competent authority that can take over 'benami' properties despite the Parliament clearing an act nearly 23 years ago.
Justice Rajiv Sahai Endlaw sent the matter to a division bench headed by Chief Justice Dipak Misra for hearing saying "the issue relates to public interest".
The petition, filed by advocate Shanmuga Patra, has sought a direction to the Ministry of Finance to frame rules under the Benami Transaction (Prohibition) Act for appointment of a competent authority who can take over 'benami' properties.
"The Centre, under the scheme of the Constitution, is not permitted to indefinitely delay framing of Rules enabling realisation of goals envisaged under the Act. In the instant case, Centre has delayed it by 23 years," Patra said.
The Centre, acting on a Law Commission report, passed the Act on September 5, 1988. However, the requisite rules have not been framed for appointing a competent authority which can take over the benami properties, the petition said.
"Whether the prevailing situation in the country, a sad state of economic frauds all around, is not enough to open eyes of the Centre to the need of translating legislative intent behind the Act into reality by framing Rules," it said.
During the hearing, the single judge bench asked the advocate to give undertakings that he has no personal interest and he was pursuing it on behalf of poor persons who cannot approach the court, the pre-requisites for filing a PIL.
Patra refused to file undertakings saying he, being a tax-payer, has personal interest in the matter. The court then referred the case to a bench, empowered to hear PILs, for hearing on August 3.
PTI
