The new law to prohibit benami transactions will come into effect from 1st of next month. <br/><br/>Parliament had passed the Benami Transactions (Prohibition) Amendment Act,2016 to curb black money. <br/><br/>An official release said,after coming into effect, the existing Benami Transactions (Prohibition) Act, 1988 will be renamed as the Prohibition of Benami Property Transactions, PBPT Act, 1988.<br/><br/>The new legislation provides for seven years imprisonment and fine for those indulging in such transactions in comparison to the existing legislation where there is a provision of three year imprisonment or fine. <br/><br/>It said, properties held benami are liable for confiscation by the government without payment of compensation.<br/><br/>An appellate mechanism has been provided under the Act in<br/>the form of Adjudicating Authority and Appellate Tribunal.