Benami in Hindi means without name. Benami property means any property which is the subject matter of a benami transaction and also includes the proceeds from such property. So, benami property is a property bought by an individual not under his or her name. Benamidar means a person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name. It can include property held in the name of spouse or child for which the amount is paid out of known sources of income. A joint property with brother, sister or other relatives for which the amount is paid out of known sources of income also falls under benami property. The transaction involved in the same is called benami transaction.
Benami transaction means (A) A transaction or an arrangement—
- where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and
- the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration.
(B) A transaction or an arrangement in respect of a property carried out or made in a fictitious name.
(C) A transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership.
(D) A transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.
Benami Transaction Prohibition (Amendment) Act, 2016
An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. It extends to the whole of India except the State of Jammu and Kashmir.
The benami act was introduced to curb on black money and to brings people with unaccounted income under the scanner.