Penalty for benami transaction

(1) Where any person enters into a benami transaction, not being a benami transaction referred to in sub-section (2) of section 3, in order to defeat the provisions of any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person who abets or induces any person to enter into such benami transaction, shall be guilty of the offence of benami transaction. (2) Whoever is found guilty of the offence of benami transaction referred to in subsection (1) shall be punishable with imprisonment for a term which shall be two years and shall also be liable to fine which may extend to twenty-five per cent of the fair market value of the property.