With reference to the 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)', consider the following statements :

1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.

Which of the statements given above is/are correct?

The 'Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)' was enacted in India to combat benami transactions.

1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction: This statement is incorrect. A benami transaction typically involves a situation where a property is bought by an individual (the benamidar) but is held for the benefit of someone else who has provided the payment (the beneficial owner). The knowledge or awareness of the owner of the property is not a determining factor in whether a transaction is classified as benami. A transaction can be considered benami even if the owner of the property is unaware, as long as the property is held by someone else and paid for by another person.
2. Properties held benami are liable for confiscation by the Government: This statement is correct. Under the PBPT Act, properties held in a benami transaction are liable to be confiscated by the government. The Act aims to curb illegal transactions and prevent tax evasion by holding properties under fictitious names or by individuals who are not the actual beneficiaries.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism: This statement is incorrect. The PBPT Act does provide for appellate mechanisms. The Act sets up authorities at various levels for the investigation of benami transactions, including the Initiating Officer, the Approving Authority, and the Administrator. Additionally, it provides for an appellate mechanism in the form of the Adjudicating Authority and the Appellate Tribunal for hearing appeals against the decisions of these officers.