Correct Option (B)
Statement 2 is correct. The Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), as amended, stipulates that properties identified as benami are subject to confiscation by the Central Government. This provision aims to deter the practice of holding property in a fictitious name to conceal the true ownership.
Incorrect Options:
Statement 1 is incorrect. A property transaction is classified as benami primarily when a property is transferred to one person (the benamidar) for a consideration paid by another person (the beneficial owner), or when the transaction is conducted in a fictitious name. The awareness of the registered owner regarding the transaction is not the sole determinant for classifying it as benami.
Statement 3 is incorrect. The PBPT Act establishes a multi-tiered mechanism for investigation and adjudication, which includes an appellate process. Initially, the Investigating Authority conducts inquiries, followed by adjudication by the Adjudicating Authority. Decisions made by the Adjudicating Authority can be challenged before the Appellate Tribunal. Further appeals can be made to the High Court and then to the Supreme Court.