Benami Transactions
Querist :
Anonymous
(Querist) 13 November 2010
This query is : Resolved
Property was purchased in the name of wife as the husband had one more property in the municipal limits. At the time of purchase of property the wife was house wife. Wife entered into Agreement of sale without the knowledge of husband. Husband challenged the so called transaction in F.C.Wife started saying she purchased the property. She had no proof she could not produce any witness.Husband has produced enough materal to prove that he purchased. Unfortunately the F.C. has decided that property has been purchased by wife. How can it be. When wife has not proof of purchase. Can I have your suggestions.
Koumarish Bhattacharya
(Expert) 13 November 2010
A transaction can not be called a benami transaction if it is purchased in the name of wife. In this case, the deed itself is the conclusive proof.
Parveen Kr. Aggarwal
(Expert) 14 November 2010
Sections 4 and 3 of the Benami Transactions Prohibition Act, 1988:
"4. Prohibition of the right to recover property held benami. – (1) No suit, claim or action to enforce any right in respect of any property held benami against the person in whose name the property is held or against any other person shall lie by or on behalf of a person claiming to be the real owner of such property.
(2) No defence based on any right in respect of any property held benami, whether against the person in whose name the property is held or against any other person, shall be allowed in any suit, claim or action by or on behalf of a person claiming to be the real owner of such property.
(3) Nothing in this section shall apply -
(a) where the person in whose name the property is held is a coparcener in a Hindu undivided family and the property is held for the benefit of the coparceners in the family; or
(b) where the person in whose name the property is held is a trustee or other person standing in a fiduciary capacity, and the property is held for the benefit of another person for whom he is a trustee or towards whom he stands in such capacity."
"3. Prohibition of benami transactions- (1) No person shall enter into any benami transaction.
(2) Nothing in sub-section (1) shall apply to the purchase of property by any person in the name of his wife or unmarried daughter and it shall be presumed, unless the contrary is proved, that the said property had been purchased for the benefit of the wife or the unmarried daughter.
(3) Whoever enters into any benami transaction shall be punishable with imprisonment for a term which may extend to three years or with fine or with both.
(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2of 1974), an offence under this section shall be non-cognizable and bailable."
