23 August 2009
Benami Transaction means one invests in a property but purchases in some one others name, but his intention is to keep himself in position of owner of property.
It may be due to love and affection and respect as one purchases property in name of his mother, wife, minor son or someone else.
It may be to defraud the creditors also. When ones position is not sound in business he purchases some property in the name of his friend or relative so that the creditors could not attach that property.
Evidence can be lead that who is actual owner and who is Benami owner only.
Benami owner has no rights in property however property stands in his name in official record of government.
Benami transactions are not prohibited under prevention of Benami Transactions Act unless it is intended to defraud the creditors.