raman (private) 17 September 2012
I have come across a benami propery transaction. I am not a party to it, but want some action shuold be taken against the property and the people involved.
Where do i complain?
As no authority has been notified to acquire ther property, should i file case in appropriate court. If so where should i
file the case? How long in general would it take to get a decision? In the meantime what happens to the property. Would that property be restrained from being sold?
Thanks
Nitish Banka (lawyer) 21 January 2018
A Benami property is a property wherein the person who actually pays the consideration of the property (purchaser), purchases the property in the name of other person (benamidar), however the purchaser did not intends to make that other person beneficiary of the propertyThe sole purpose of Benami transaction is to facilitate the purchaser to hide him from the transaction for a various number of reasons like protecting himself from creditors, legal heirs, evading taxes etc.
Legality
Benami transaction may seem improper but they are not purely illegal unless it is a sham transaction wherein the transfer of the property actually does not takes place but takes place only on the papers. However with the enactment of Benami prohibition act, 1988, section 3(3) of the said act makes the person entering into the Benami transaction as a punishable offence, though according to section 3(2) of the said act there are exceptions which makes benami transaction as legal, mainly
However the transfer of title in the property may not be said to be illegal in spite prohibition in Benami prohibition act, 1988
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By Adv. Nitish Banka
B.E LLB(HONS)
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Practicing Advocate District and High courts in Delhi/NCR
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