Benaami Property: Are you at risk?

After demonetization, Prime Minister Narendra Modi and the Indian Government may crack the whip on Benami property holders. Many citizens are unsure if the property they own will come under Benami properties.

What is a Benami property?

Benami essentially means property without a name. In this kind of transaction, the person who pays for the property does not buy it under his/her own name. The person on whose name the property has been purchased is called the benamdar and the property so purchased is called the Benami property. The person who finances the deal is the real owner. ' The property is held for the benefit - direct or indirect - of the person paying the amount.

Consult top-rated Property lawyers in your city

641+ Lawyers are online

FIND MY LAWYER NOW

What isn't a Benami transaction?

1. Property held under the name of spouse or child, for which the amount is being paid through a known source of income. 2. A joint property with a brother, sister, or other relatives for which the amount is paid out of known sources of income. 3. Property held by someone in a fiduciary capacity that is, a transaction involving a trustee and a beneficiary.

What falls under a Benami transaction?

Assets of any kind & mdash movable, immovable, tangible, intangible, any right or interest, or legal documents. As such, even gold or financial securities could qualify to be Benami.

How it affect the people?

It is being done to curb black money. People booked under the act may face loss of property, penally, and up to 7 years in jail. People with unaccounted income will sure have a tough time ahead. As for the general public, it won't be much of an issue if their transactions are legal. Advocate Rohit Nagpal explains what properties may fall under the Benami transaction and associated penalties for people involved in the Benami transaction.

Consult top-rated Property lawyers in your city

641+ Lawyers are online

FIND MY LAWYER NOW

Why do you need a Lawyer?

A lawyer, being an expert in the application and enforcement of laws can provide you assistance with your legal issues and can guide you through the procedure of how a case should be dealt with. He can help you formulate a strategy and effectively assist you with the execution of the same. A lawyer is well aware of the laws and having experience in dealing with similar cases can help you understand the laws and implications involved if any. He can also assist you in getting a time-bound remedy for your legal issue and can also help you make sure that any steps taken may not cause such errors that may not be even be rectified with future legal proceedings. You can also use LawRato's Free Legal Advice service to get free advice on your case from expert property lawyers.

Author

Advocate Rohit Nagpal

4.5 | 25+ user ratings
Greater Kailash I, Delhi
24 years

GET LEGAL HELP

GET LEGAL HELP