Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: Under the PBPT Act, a transaction where property is transferred to/held by a person and consideration is provided by another person is benami, even if the ostensible owner denies knowledge or awareness.
Statement 2 is correct: Any property held benami is liable to be confiscated by the Central Government without paying any compensation.
Statement 3 is incorrect: The Act establishes an Appellate Tribunal to hear appeals against orders passed by the Adjudicating Authority, thereby providing a clear appellate mechanism.
Negative absolute statements claiming an enforcement Act 'does not provide for any appellate mechanism' typically contradict natural justice and are almost always incorrect in UPSC papers.
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