What is Benami Property?
Benami property means the property which is anonymous or without a name. In a transaction where the person who pays for the property does not buy it under his/her own name, is called Benami transaction. The person on whose name the property is purchased is called the Benamdar. The respective property purchased is called Benami Property. In this case, the person who is financing the transaction is actual or real owner.
Constitution- What does not come under Benami transaction?
a) Property held under the name of spouse or child, for which the amount is being paid through a known source of income.
b) A joint property with brother, sister or other relatives for which the amount is paid out of known sources of income.
c) Property held by someone in a fiduciary capacity; that is, transaction involving a trustee and a beneficiary.
d) a member of a Hindu undivided family, and is being held for his or another family member’s benefit, and has been provided for or paid off from sources of income of that family.
The Benami Transactions (Prohibition) Amendment Bill, 2015 was introduced in Lok Sabha on May 13, 2015 by the Minister of Finance Mr. Arun Jaitley. The Bill seeks to amend the Benami Transactions Act, 1988. This Bill also seeks to amend the definition of benami transactions, establish adjudicating authorities and an Appellate Tribunal to deal with benami transactions, and change or ascertain the penalty for entering into benami transactions to rigorous imprisonment of one year up to seven years, and a fine which may extend to 25% of the fair market value of the benami property. It also seeks to establish authorities to conduct investigations regarding transactions: Initiating Officer, Administrator, Approving Authority and Adjudicating Authority.
Benami Transactions are proved to be the major setback for economic development of the nationand because of that, after demonetisation, Prime Minister is going to take major step to eradicate Black money and corruption and to recover the property which belongs to government.