B.A.LL.B.

(HONS) /
B.A.LL.B. (HONS) / LL.B / BBA
Name of the Student __-NIYATI KARNWAT
Semester _BBA.LL.B.(H.)7TH SEM
Enroll No. _Dl1700803
University Exam Roll No.___70440721_
Status : Regular/ATKT _REGULAR
Assignment Subject __PROPERTY LAW
Assignment Topic_benami property a critical analysis
of the benami transactions act 1988

Submitted to : Mr. Submitted by:

Jaidev Mahindra Name _Niyati karnawat
Date _______________ _Semester _BBA.LL.B.
Marks Obtained ______ (H.) 7TH SEM
 ACKNOWLEDGEMENT

I have put in efforts in this assignment. However, it would

not have been possible without the kind support and help
of many individuals and organizations. I would like extent
my sincere thanks to all of them.
 
I thank my God for providing me with everything that I
required in completing this assignment.
 
I am highly indebted to the Teacher in Charge MR. JAIDEV
MAHINDRA for guidance and constant supervision as well
as for providing necessary information regarding the
assignment and also for her support in completing the
assignment.
 
I would like to express my gratitude towards my parents for
their kind co-operation and encouragement which helped
me in the completion of this assignment.
 
My hearty thanks and appreciations go to my classmates
in developing the assignment and to the people who have
willingly helped me out with their abilities.

Student Name: NIYATI KARNAWAT

 CERTIFICATE OF AUTHENTICITY

This is to certify that NIYATI KARNAWAT… student of

BBA.LL.B. (H.) 7 SEM has successfully completed the
benami property a critical analysis of the benami
transactions act 1988
assignment under the guidance of MR. JAIDEV
MAHINDRA SIR during he year 2020-2021.
 

Student Name- NIYATI KARNAWAT

 DECLARATION

I Niyati Karnawat student of B.B.A.LL.B. (HONS.) 6th

SEM at Indore Institute Of Law declare that project
work entitled was carried by me on my own research .
The project was undertaken as a part of academic
curriculum according to the university rules and
regulations and it has no commercial motive and
interest. It is my original work . it is not submitted to
any other organization for any other purpose.

Signature of the Student: Niyati karnawat

Place: Indore Institute of Law
Date : 05/01/2021
Contents
1. A Legal Critical Analysis of Benami Transaction Act 1988
2. INTRODUCTION
3. THE LEGAL SPIRIT OF BENAMI TRANSACTIONS
4. CONCEPT OF BENAMI TRANSACTION
5. BENAMI TRANSACTION (PROHIBITION) ACT VS. TRANSFER OF PROPERTY
ACT
6. DIFFERENCE BETWEEN SEC. 41 AND SEC. 53 OF TRANSFER OF PROPERTY
ACT, 1882
7. SECTION 53, TRANSFER OF PROPERTY ACT, 1882 AND ITS REFLECTIONS
8. CRASH ON SEC 41 OF TRANSFER OF PROPERTY ACT, 1882
9. RE-TRANSFER OF LABEL TO REAL OWNER IS BANNED
10. BENAMI TRANSACTIONS IMPLICATIONS AND COMPLICATIONS
11. CONVENTIONAL SCHEME AND AUTHORITY
12. NEGATIVE IMPACT OF ACT
13. BENAMI TRANSACTION AMENDMENT ACT, 2016 AND ITS SHORTFALL
14. BENAMI TRANSACTION AND ITS RELATION TO MONEY LAUNDERING
15. CONCLUSION
16. BIBLIOGRAPHY

1
A Legal Critical Analysis of Benami Transaction Act 1988

Abstract: After surgical strike on black money, government has warned Benami property
holders that his subsequently footstep would be alongside them. Benami property would be the
major step towards eradicating black money and corruption. Benami transactions in its total
are easier said than done to eradicate from the society, because of the very nature of the
relationship between parties who enter into such kind of transaction. Benami transactions are
decontamination themselves by not being controlled only to transaction between real owner
and benamdar, it has customized itself to many other forms like money laundering. Benami
transaction is prototypical part of transfer of property, meager passageway of fundamental
legislations like Prevention of Money Laundering Act, 2002 is not enough but its impact on
Transfer of Property. The Benami Transactions (Prohibition) Amendment Act, 2016 is a
modified version of older Benami Transactions (Prohibition) Act 1988. Benami transaction is
approved out with the aim to conceal the real source of money. Benami Transaction tried to
control transactions; on the other hand, it could not comprehend the entity of the Act to its
fullest because it failed to consider all forms of Benami transactions. Benami transactions in
object, it tries to achieve that is hiding the illegal source of money. Benami transaction is
broadened it can comprise other forms of dealing with black money as healthy like money
laundering..1

INTRODUCTION

Prologue A number of rights are present which are recognized as human rights or
straightforward rights because they are very fundamental for the survival of human being and
live and development of a human to its fullest. Right to property was never considered one of
these normal rights because it was a construction of act .The Benami Transactions (Prohibition)
Amendment Act 2016 imposes draconian cost on persons looking for to escape the law by
holding property by unlawful means. However, the strike of the law, if factually interpreted,
also unfavorably affects above suspicion persons who enter into authentic transactions. 2 We
have analyzed the statutory provisions in element and explained how they should be interpreted
so that the intention of the legislature is met even as avoiding destitution to legitimate
transactions. Fundamental Rights of Indian Constitution provides immunity of Art. 13 of the
Indian Constitution , Right to property as a fundamental right is one of the constitutional

1 130th Report of Law Commission of India, Benami Transaction (1988)

2 ]. Art. 13, Constitution of India, 1950

2
blunders. Social freedom and equal allocation of wealth were one of the objectives to be
achieved after independence and to that effect, instruction ideology of State Policy was evolved
and located under Part IV of the Constitution . Constitution was deteriorating to fulfill the
guarantee of social liberation and equality of distribution. It was in direct disagreement of social
nature of the state as envisaged by the Preamble. Right to property as a fundamental right was
detached from Fundamental Rights by deleting Art. 19(f) and Art.31, Right to property was a
formation of decree and to attain the goal of social equal sharing of resources, it became
necessary to use the tool of law to control the allotment of resources, property being one of the
most renowned wealth. Meditation of such property was a Benami transaction which would
allow a person to hold real ownership rights of by transferring ownership for namesake to
someone else. 3To identify the problem itself and after much reflection Benami Transaction
(Prohibition) Act, 1988 was passed to successfully undertake Benami transactions. The
property law because freshly there have been much manifestation on the law to begin Benami
transactions. The aim of these provisions of Benami Transaction (Prohibition) Act, 1988 in
right of Transfer of Property Act, 1882, To understand how Benami Transaction (Prohibition)
Act, 1988 and Amendment 2016 has impacted transfer of property.

II. THE LEGAL SPIRIT OF BENAMI TRANSACTIONS

Benami Transactions revolves approximately the strange feature that there is no purpose of
benefitting that person in whose name the property is transacted. The person in whose name
property is transacted is called Benamdar which is simply an assumed name for a person in
whose name valuable ownership of property in fact vests . There are many factors which lead
to the put into practice of Benami communication. Considering the nature of the transaction
though these transactions are not for eternity detrimental, whenever they go beyond rightful
extent, they can have catastrophic belongings. Thus, there were certain Benami transactions,
which were recognized, as unlawful and thus punishable.

1). Joint Hindu family

2). Rip-off on creditors.

3).Tax escaping.

4).Social and political risks of abolition.

3 Minerva Mills Ltd. v. Union of India, AIR 1980 SC 1789 (Supreme Court of India)\

3
CONCEPT OF BENAMI TRANSACTION

Benami Transaction Amendment Act, 2016 Act, the term "Benami Property" U/S 1(8) has
been defined as under:

• A Benami Property means any property which is the

• subject matter of a Benami transaction

• Also includes the proceeds from such property. The definition of property under 2016 Act
includes assets of any kind, whether movable or immovable, tangible or intangible, corporeal
or incorporeal .

Benami Transaction Amendment Act, 2016 U/S 1 (9) of the term "Benami
Transaction"has been defined as under:

A Benami Transaction means-

• a transaction or an arrangement-

• where a property

• is transferred to, or is held by, a person,

• the consideration for such property has been provided, or paid by, another person;

• the property is held for the immediate or future benefit, direct or indirect, of the person who
has provided the consideration, except when the property is held by:

Sec. 41 dealing with property transactions by the apparent owner with the third party and
fraudulent transfer of property by transferors to the transferee to defeat or delay the creditors
of the transferor. Whether a transaction is Benami or not is a prejudiced question unreliable
according to situation of the container. However, in a case of Jayadayal Peddar v. Bibi Hazra,
Supreme Court had laid downward subsequent tests 4 .

Source of the purchase of money.

Character of possession of the property after the purchase.

Purpose, if any for Benami transaction.

4 Darashaw Jivaji Vakil, The Transfer of Property Act, 1882, 389 (2nd edn., 2004).

4
The relationship between the parties.

The real owner and the ostensible owner were related to each other.

Conduct of the parties in dealing with the property Custody of the title deeds after the sale.

BENAMI TRANSACTION (PROHIBITION) ACT VS. TRANSFER OF PROPERTY

ACT

Section 4 of Benami Transaction (Prohibition) Act, 1988 states that,

(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. 5

(2) No defense based on any right in respect of any property held became whether against the
person in whose name the property is held or against another 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”

DIFFERENCE BETWEEN SEC. 41 AND SEC. 53 OF TRANSFER OF PROPERTY

ACT, 1882

Section 6 of Benami Transaction (Prohibition) Act, 1988and Amendment Act 2016 provides
that Section 53 of Transfer of Property Act, 1882 which secures welfare of creditors next to
overcome and any law connecting to transfers for a prohibited point which also includes
Section 41 of Transfer of Property Act .

Section 41, Transfer of Property Act, 1882 and Its Implications

Section 41 of Transfer of Property Act, 1882 deals with notion of ostensible owner the section
states that, Transfer by ostensible owner. Where, with the consent, express or implied, of the
persons interested in immovable property, a person is the ostensible owner of such property
and transfers the same for consideration, the transfer shall not be voidable on the ground that
the transferor was not authorized to make it: provided that the transferee, after taking
reasonable care to ascertain that the transferor had power to make the transfer, has acted in
good faith” . Sec. 41 allows a person to buy property in the name of another as an ostensible
owner then why the purchase of property in the name of another person is prohibited under
Benami Transaction (Prohibition) Act, 1988. Sec. 41 is to defend the interest of blameless third

5 57th Report of Law Commission of India, Benami Transactions (1973)

5
parties who with reasonable care and in good faith enter into a transaction with the ostensible
owner, where the real owner was himself failed to protect his or her interest by impliedly or
explicitly authorizing the ostensible owner to transact . To benefit protection of Sec 41 next are
the situation: The chief state is that the person who is transferring the property should be an
ostensible owner. There should be approval from the real owner, which can be implied or
express form. The ostensible owner should get some consideration in return of the property.
Reasonable care has to be taken by the transferee about the authority of transferor to the
property and the transferee had acted in good faith. This section is applicable only to transfer
of immovable property and not in the case of movable property . 6

‘OSTENSIBLE OWNER’ VS. ‘BENAMDAR’

Sec 41, there are indications of ownership in hands of transferor like name, entries in records
etc. In adding together to so as to, he or she has apparent and unconditional complete authority
to deal with the property as a real owner. This authority is given by the real owner through
explicit declaration or implicit through conduct. Ostensible owner represents the real owner in
the transactions . Sec 41 of Benami Transaction (Prohibition) Act, 1988 Principle of common
law that means that a person cannot confer a better title than he himself holds. Concept of
ostensible ownership, the drawing conclusion is that ostensible ownership derives its
legitimacy from the ideas of equity and natural justice the doctrine of estoppels. Benami
Transactions (Prohibition) Act, 1988 an ostensible owner has become a real owner except in
certain situations.

SECTION 53, TRANSFER OF PROPERTY ACT, 1882 AND ITS

REFLECTIONS

This section rationale that is the shield of transferee who acts in good faith, pays due
consideration and to whom property has been transferred and creditor to defeat or wait whom
property has been transferred .

Fraudulent Transfer

Every transfer of immovable property made with intent to defeat or delay the creditors of the
transferor shall be voidable at the option of any creditor so defeated or delayed. Nothing in this
sub-section shall impair the rights of a transferee in good faith and for consideration. Nothing

6 . Sec 1(8) Benami Transaction Amendment Act, 2016

6
in this sub-section shall affect any law for the time being in force relating to insolvency. A suit
instituted by a creditor (which term includes a decree-holder whether he has or has not applied
for execution of his decree) to avoid a transfer on the ground that it has been made with intent
to defeat or delay the creditors of the transferor shall be instituted on behalf of, or for the benefit
of, all the creditors. Every transfer of immovable property made without consideration with
intent to defraud a subsequent transferee shall be voidable at the option of such transferee. For
the purposes of this sub-section, no transfer made without consideration shall be deemed to
have been made with intent to defraud by reason only that a subsequent transfer for
consideration was made” . 7

SEC. 53, TPA, 1882 VS. BENAMI TRANSACTION (PROHIBITION) ACT,

1988

Sec. 53 is that is a property transfer between transferor and transferee has to be valid transfer
and it cannot be a fictitious or sham transaction. In a situation where there is no real intention
of the actual transfer of property and real intention is the satisfaction of some ulterior motive
beneficial to the transferor . Sec. 53 is Exempted as of Requirements of Benami Transaction
(Prohibition) Act, 1988 Benami transaction, there is the real owner who is a beneficiary and
name lender. However, Benami Transaction (Prohibition) Act, 1988 eliminated this
dissimilarity by creation name lender as a real owner, miserly real owner his beneficial interest.
However, there are certain circumstances in which the blow of such transaction is not just
limited to undeserved enhancement of benamdar at the cost of benefit of beneficiary but
strength lead to causing damage to the third person . To steer clear of such option Sec 53 is
exempted where deceitful transfer between transferor and transferee should not affect creditor.
Consequently, to safeguard the interest of guiltless third-party Sec 53 is an exception carved in
sec. 6 of Benami Transaction (Prohibition) Act, 1988.

CRASH ON SEC 41 OF TRANSFER OF PROPERTY ACT, 1882

Sec. 41 differentiates between ostensible owner and real owner, this difference is on the other
hand eliminated by Benami Transaction (Prohibition) Act, 1988 by construction benamdar real
owner and partial extent of the transaction allowable under Sec. 41 to only when the transaction
is an exception to Benami transaction as per the provisions of the Act that is to comprise the
operation in the name of wife or unmarried daughter, in fiduciary capacity to create the trust or

7 . Sec 1(9) Benami Transaction Amendment Act, 2016

7
as a coparcener in Hindu Undivided Family property . The scope of Sec. 41 is expanded as per
the provisions of Benami Transaction (Prohibition) Bill, 2015. In adding up to the above-
mentioned exception, new Bill seeks to relax obtainable exceptions.

Sec. 3(2) of Act of 1988, an exception is drawn only in favor of wife whereas :

Sec. 2(9) (iii) of Bill uses word ‘spouse’ thus, expanding the scope of Sec. 41 even further .

Sec. 2(9) (iv) expands the exception to brother and sister or lineal antecedents and descendants
where names of benamdar and real owner are as ‘joint-owners’ .

RE-TRANSFER OF LABEL TO REAL OWNER IS BANNED

Prior to the passage of Benami Transaction (Prohibition) Act, 1988 bench was positive of
Benami transactions in a wisdom that if a real owner goes to court to claim ownership title,
after due proceedings court would award the same. Sec. 4 Benami Transaction (Prohibition)
Act, 1988, prohibited such an action against benamdar . Benami transactions because a
standard relationship between real owner and benamdar was fiduciary or was of supremacy as
a result, it was scarcely possible for benamdar to go alongside real owner’s wish and avoid
retransfer of property. Therefore, although the legal suit was prohibited retransfer of property
could have been done without going to court. Sec. 6 of the Bill states that, No person, being a
benamdar shall re- transfer the Benami property held by him to the beneficial owner or any
other person acting on his behalf. Where any property is re-transferred in contravention of the
provisions . 8

BENAMI TRANSACTIONS IMPLICATIONS AND COMPLICATIONS

Benami transactions are one of the disreputable conducts to deal with black money
assassination answerability of economy. These transactions force into economy back money
from side to side movement and reserves, Corruption prevalent in Indian society and other
societies.

• Tax evasion

• Black money

8 Jayadayal Peddar v. Bibi Hazra, AIR (1974) S.C.171

8
• Defeating land ceiling laws:

WHAT ARE THE COMPLICATIONS CONNECTED BY MEANS OF

BENAMI TRANSACTIONS?

Benami transaction is not forever a straight incorrect. It is so long-winded with supplementary

factors that it why to like other wrongs, both civil and criminal it is very difficult to isolate and
completely get rid of from the society. Subsequent are the complications allied with Benami
transaction and reasons why Benami Transaction (Prohibition) could not be whole
accomplishment

. • Section 82: “Transfer to one for consideration paid by another where property is transferred
to one person for a consideration paid or provided by another person, and it appears that such
other person did not intend to pay or provide such consideration for the benefit of the transferee,
the transferee must hold the property for the benefit of the person paying or providing the
consideration” .

• Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfer

or causes to be transferred to any person, without adequate consideration, any property,
intending thereby to prevent, or knowing it to be likely that he will thereby prevent, the
distribution of that property according to law among his creditors or the creditors of any other
person, shall be punished with imprisonment of either description for a term which may extend
to two years, or with fine, or with both .

• Whoever dishonestly or fraudulently prevents any debt or demand due to himself or to any
other person from being made available according to law for payment of his debts or the debts
of such other person, shall be punished with imprisonment of either description for a term
which may extend to two years, or with fine, or with both . Whoever dishonestly or fraudulently
conceals or removes any property of himself or any other person, or dishonestly or fraudulently
assists in the concealment or removal thereof, or dishonestly releases any demand or claim to
which he is entitled, shall be punished with imprisonment of either description for term which
may extend to two years, or with fine, or with both .

• No suit shall be maintained against any person claiming title under a purchase certified by
the court in such manner as may be prescribed on the ground that the purchase was made on
behalf of the plaintiff or on behalf of someone through whom the plaintiff claims and in any
suit by a person claiming title under a purchase so certified, the defendant shall not be allowed

9
to plead that the purchase was made on his behalf or on behalf of someone through whom the
defendant claims .

•Nothing in this section shall bar a suit to obtain a declaration that the name of any purchaser
certified as aforesaid was inserted in the certificate fraudulently or without the consent of the
real purchaser, or interfere with the right of a third person to proceed against that property,
though ostensibly sold to the certified purchaser, on the ground that it is liable to satisfy a claim
of such third person against the real owner. The section provides that no suit shall be maintained
against the certified auction purchaser on the ground that the purchase was made on behalf of
the plaintiff unless he can prove that the name of the said purchaser was inserted in the sale
certificate fraudulently or without his consent .

CONVENTIONAL SCHEME AND AUTHORITY

Benami transaction capacity not constantly is illegitimate in India; there is an age-old system
of buying property in names of close relatives and family members. Not unavoidably these
families are HUFs and they have the indisputable goal of buying property in someone else’s
name because of some institution or family custom or simply as a symbol of friendliness. The
legislation non-discriminately brings all the connections in its region.

NEGATIVE IMPACT OF ACT

It is a standard perform in Indian families, predominantly Hindu families, which may not be
technically Hindu Unlimited Families, where elders donate considerable funds out of their
Public Fund, gratuity, lifelong savings which can by no means be termed as black money or
even to circumvent any other accountability. Yet if the immovable property is purchased in the
name of a younger member of the family under an authentic impression, they will also have a
right to the property as well as a right to live in them. Benami Act, such bonafide contributors
of finances misplaced all their rights in the property and even to protect a claim. The registered
owner, who is a younger member of the family, has thrown out the real owner, who is generally
an elderly person or parents, from the property by invoking Section 4 of the Act as it was made
effectual on second thoughts. 9

9 Dr. G. C. Bharuka, Mulla’s Transfer of Property Act, 1882, 274 (10th edn., 2006)

10
BENAMI TRANSACTION AMENDMENT ACT, 2016 AND ITS
SHORTFALL

The planned amendment in the Section 2(9)(iv) of Bill provides that a property detained by
any person in the name of his brother or sister or ascendant or descendant has been kept out of
the definition of became property only if his her name also appears as joint owner in such
property . This definition or exception is not only confusing since such a transaction will, even
otherwise, not be became due to appearance of name of the real owner as joint owner, but will
also be of no help to such elderly members of the family who had contributed fully or
substantially for purchase of property in the name of their son, daughter, brother and sister in
the past without inclusion of their names as joint owners in the property documents. Such
transactions, even though done even prior to coming into force of the 1988 Act, will still be
termed as Benami and such elderly persons and blood relations will still be deprived from not
only claiming or enforcing their rights in such property but also from contesting any claim in
a suit or legal proceedings as subsections (1) & (2) of Section 4 have been retained in their
original shape. This is not only self-contradictory in itself but also contrary to laws like the
Senior Citizen Act, 2007. G Mahalingappa v. GM Savitha, an old father from South India, who
purchased a property in the name of his infant daughter because she was born under an
favorable nakshatra under a belief he would prosper by this, was dragged right up to the
Supreme Court by the same daughter after she grew up and the apex court even commented
upon this unfortunate part of the case .

BENAMI TRANSACTIONS ARE TRICKY TO OBSERVE BENAMI

transactions are scarcely entered into with total strangers. Frequently, they are entered into with
family members or some good friend with whom a person shares a fiduciary affiliation. Benami
transactions take place is property-owner and tenant or master and his servant where the
relationship is influenced by other considerations like fear of losing his or her job .

BENAMI TRANSACTION AND ITS RELATION TO MONEY

LAUNDERING

Benami transaction is approved out with the aim to conceal the real source of money. Benami
Transaction tried to control transactions; on the other hand, it could not comprehend the entity
of the Act to its fullest because it failed to take into account all forms of Benami transactions.
Benami transactions in object its tries to achieve that is hiding the illegeal source of money.

11
Benami transaction is broadened it can comprise other forms of dealing with black money as
healthy similar to money laundering. As per Sec. 3 of Prevention of Money Laundering Act,
2002, “Offense of money- laundering.—Whosoever directly or indirectly attempts to indulge
or knowingly assists or knowingly is a party or is actually involved in any process or activity
connected with the proceeds of crime and projecting it as untainted property shall be guilty of
the offence of moneylaundering” . 10

10 57th Report of Law Commission of India, Benami Transactions (1973)

12
CONCLUDING ANNOTATIONS

• Benami transactions are fundamentally involves the transfer of property.

• Benami Transaction (Prohibition) Act, 1988 unsurprisingly has some impact on Transfer of
Property Act, 1882.

The impact of this Act on Sec. 41 and Sec. 53 of Transfer of Property Act, 1882. Benami
transaction as defined in Benami Transaction Act is different from that mentioned in Sec 41.

• The difference between real owner and ostensible owner and thus limiting the scope of Sec.
41 which talks about two separate owners that are real and ostensible to exceptions provided
to Benami transactions in Benami Transaction (Prohibition) Act, 1988.

• Sec. 6 of Benami Transaction (Prohibition) Act, 1988 draws exemption in favor of Sec. 53,
so as to put aside concentration of creditors which would not have been saved or else. IJESC,
September 2020 27324 http:// ijesc.org/

• Sec. 6 of Benami Transaction Act carves out the exception in favor of Sec. 53 extremely
openly; in the same way, unambiguous condition stating imperfect range of Sec. 41 subsequent
to the channel of Benami Transaction Prohibition Act should be made so as to do away with
uncertainty.

• Benami Transaction (Prohibition) Act, 1988 envisages a medicine for that; on the other hand,
if not appropriate civil machinery is put into action it will not be probable.

• Benami Transactions Act of 1988 failed to transport in this machinery which was later tried
to be brought in by a variety of Bills which failed, latest being introduced in 2016.

•Benami transactions in its total are easier said than done to eradicate from the society, because
of the very nature of the relationship between parties who enter into such kind of transaction.

• Benami transactions are decontamination themselves by not being controlled only to

transaction between real owner and benamdar, it has customized itself to many other forms like
money laundering.

• Benami transaction is prototypical part of transfer of property, meager passageway of

fundamental legislations like Prevention of Money Laundering Act, 2002 is not sufficient but
its impact on Transfer of Property.

13
• It is an occasion when some elasticity requirements to be brought in the longstanding
characterization of Benami transaction. To say over and over and incorporate aptitude to get to
the bottom of troubles arising out of Benami transactions in an additional outward appearance
as well as.

• This is not probable but within comprehensive revise and lawmaking will to set up capable
equipment.

14
BIBLIOGRAPHY

[1]. 130th Report of Law Commission of India, Benami Transaction (1988)

[2]. Art. 13, Constitution of India, 1950

[3]. Minerva Mills Ltd. v. Union of India, AIR 1980 SC 1789 (Supreme Court of India)\

[4]. Darashaw Jivaji Vakil, The Transfer of Property Act, 1882, 389 (2nd edn., 2004).

[5]. 57th Report of Law Commission of India, Benami Transactions (1973)

[6]. Sec 1(8) Benami Transaction Amendment Act, 2016

[7]. Sec 1(9) Benami Transaction Amendment Act, 2016

[8]. Jayadayal Peddar v. Bibi Hazra, AIR (1974) S.C.171

[9]. Sec. 4, Benami Transaction (Prohibition) Act, 1988.

[10]. Sec. 6, Benami Transaction (Prohibition) Act, 1988.

[11]. Sec. 41, Transfer of Property Act, 1882.

[12]. Dr. G. C. Bharuka, Mulla’s Transfer of Property Act, 1882, 274 (10th edn., 2006)

15
 Page 1

PLAGIARISM SCAN REPORT

Words 994 Date January 05,2021

Characters 6885 Exclude URL

16% 84% 9 49
Plagiarized
Plagiarism Unique Unique Sentences
Sentences

Content Checked For Plagiarism

A Legitimate Basic Investigation of Benami Exchange Act 1988

Unique: After careful strike on dark cash, government has cautioned Benami property
holders that his therefore stride would be close by them. Benami property would be the
significant advance towards destroying dark cash and defilement. Benami exchanges in its aggregate
are more difficult than one might expect to destroy from the general public, due to the very idea of the
connection between parties who go into such sort of exchange. Benami exchanges are
cleaning themselves by not being controlled distinctly to exchange between genuine proprietor
what's more, benamdar, it has modified itself to numerous different structures like illegal tax avoidance. Benami
exchange is prototypical piece of move of property, pitiful way of principal
enactments like Avoidance of Tax evasion Act, 2002 isn't sufficient however its effect on
Move of Property. The Benami Exchanges (Restriction) Correction Act, 2016 is a
adjusted rendition of more established Benami Exchanges (Restriction) Act 1988. Benami exchange is
affirmed out with the expect to disguise the genuine wellspring of cash. Benami Exchange attempted to
control exchanges; then again, it couldn't understand the element of the Demonstration to its
fullest on the grounds that it neglected to think about all types of Benami exchanges. Benami exchanges in
object, it attempts to accomplish that is concealing the unlawful wellspring of cash. Benami exchange is
expanded it can contain different types of managing dark cash as sound like cash
laundering..1
Presentation
Preface various rights are available which are perceived as common freedoms or
direct rights since they are central for the endurance of individual and
live and advancement of a human to its fullest. Right to property was never viewed as one of
these typical rights since it was a development of act .The Benami Exchanges (Preclusion)
Change Act 2016 forces draconian expense on people searching for to get away from the law by
holding property by unlawful methods. Notwithstanding, the strike of the law, if genuinely deciphered,
likewise negatively influences beyond reproach people who go into legitimate transactions.2 We
have dissected the legal arrangements in component and clarified how they should be deciphered
with the goal that the goal of the council is met even as staying away from desperation to authentic
exchanges. Principal Privileges of Indian Constitution gives insusceptibility of Workmanship. 13 of the
Indian Constitution , Right to property as a key right is one of the established botches. Social opportunity and equivalent
distribution of abundance were one of the destinations to be
accomplished after autonomy and with that impact, guidance philosophy of State Strategy was developed
also, situated under Part IV of the Constitution . Constitution was decaying to satisfy the
assurance of social freedom and balance of circulation. It was in direct contradiction of social
nature of the state as imagined by the Preface. Right to property as a basic right was
isolates from Principal Rights by erasing Craftsmanship. 19(f) and Art.31, Right to property was a
development of pronouncement and to achieve the objective of social equivalent sharing of assets, it became
important to utilize the apparatus of law to control the assignment of assets, property being one of the
most famous abundance. Contemplation of such property was a Benami exchange which would
 Page
permit an individual to hold genuine proprietorship privileges of by moving possession for namesake to
another person. 3To recognize the difficult itself and after much reflection Benami Exchange
(Denial) Act, 1988 was passed to effectively attempt Benami exchanges. The
property law on the grounds that newly there have been a lot of sign on the law to start Benami
exchanges. The point of these arrangements of Benami Exchange (Disallowance) Act, 1988 in
right of Move of Property Act, 1882, To see how Benami Exchange (Forbiddance)
Act, 1988 and Correction 2016 has affected exchange of property.
II. THE Lawful Soul OF BENAMI Exchanges
Benami Exchanges rotates around the abnormal element that there is no reason for
profiting that individual in whose name the property is executed. The individual in whose name
property is executed is called Benamdar which is basically an accepted name for an individual in
whose name important responsibility for indeed vests . There are numerous variables which lead
to the set up as a regular occurrence of Benami correspondence. Thinking about the idea of the exchange
despite the fact that these exchanges are not forever inconvenient, at whatever point they go past legitimate
degree, they can have cataclysmic possessions. Hence, there were sure Benami exchanges,
which were perceived, as unlawful and consequently culpable.
1). Joint Hindu family
2). Sham on loan bosses.
3).Tax getting away.
4).Social and political dangers of cancelation
CONCEPT OF BENAMI TRANSACTION
Benami Transaction Amendment Act, 2016 Act, the term "Benami Property" U/S 1(8) has
been defined as under:
• A Benami Property means any property which is the
• subject matter of a Benami transaction
• Also includes the proceeds from such property. The definition of property under 2016 Act
includes assets of any kind, whether movable or immovable, tangible or intangible, corporeal
or incorporeal .
Benami Transaction Amendment Act, 2016 U/S 1 (9) of the term "Benami
Transaction"has been defined as under:
A Benami Transaction means-
• a transaction or an arrangement-
• where a property
• is transferred to, or is held by, a person,
• the consideration for such property has been provided, or paid by, another person;
• the property is held for the immediate or future benefit, direct or indirect, of the person who
has provided the consideration, except when the property is held by:
Sec. 41 dealing with property transactions by the apparent owner with the third party and
fraudulent transfer of property by transferors to the transferee to defeat or delay the creditors
of the transferor. Whether a transaction is Benami or not is a prejudiced question unreliable
according to situation of the container. However, in a case of Jayadayal Peddar v. Bibi Hazra,
Supreme Court had laid downward subsequent tests4
.

Sources Similarity

What is BTPA 1988? - Quora

the act defines a 'benami' transaction as any transaction in which property is transferred to one person for
consideration paid by another person.under the 2016 act, the term "benami property" under section 1(8) has been 2%
defined as under:a benami property means any property which is the.

https://www.quora.com/What-is-BTPA-1988

What is Benami Property - Goyal Mangal & Company

2%
https://www.cagmc.com/what-is-benami-property/

All About Benami Transaction (Prohibition) Amendment Act ...

https://www.latestlaws.com/articles/all-about-benami-transaction-prohibition-amendment-act2016-by-lavina- 2%
bhargava/

2%
where a property is transferred to or is held by a person and the...

property has been provided by the person to whom possession of property has been allowed but the person who has
granted possession thereof continues to( 10 ) " benamidar " means a person or a fictitious person, as the case may be,
in whose name the benami property is transferred or held and... Page

https://www.coursehero.com/file/pu46r5/where-a-property-is-transferred-to-or-is-held-by-a-person-and-the-
consideration/

FBR defines benami transactions - Newspaper - DAWN.COM

an official statement issued by the fbr spokesperson hamid ateeq said that a benami transaction encompasses where
a property is transferred to, or held by, a person and the consideration for such property has been provided, or paid by, 2%
another person (the trustees and wife, children...

https://www.dawn.com/news/1470736

How Benami law changes impact both old and new property buyers

in addition to loss of property, persons who are guilty of the offence of a benami transaction would be liable for fine
which may extend up to 25% of thefor such property has been provided, or paid by, another person and the property is
held for the immediate or future benefit, direct or indirect, of...
2%
https://economictimes.indiatimes.com/wealth/real-estate/how-benami-law-changes-impact-both-old-and-new-
property-buyers/articleshow/68122797.cms

Salient Features Of Prohibition Of Benami Property Transactions Act...

(ii) the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the
consideration.there is no compensation by the government if the property is confiscated. the act has tried to sort out
the weaknesses of the existing provisions and is remarkable...
2%
https://itatonline.org/articles_new/salient-features-of-prohibition-of-benami-property-transactions-act-as-
amended-in-2016/

Fraudulent Transfer of Property and its effect - The Law Study

a transfer of property the object of which is to defraud a creditor or hinder or delay him or to put such property beyond
his reach is called fraudulent transfer.transfer of immovable property, which is made with intent to defeat or delay 2%
creditors of transferor, does not affect rights of transferee in...

http://thelawstudy.blogspot.com/2015/03/fraudulent-transfer-of-property-and-its.html

A Legal Critical Analysis of Benami Transaction Act ... - IJESC

Whether a transaction is Benami or not is a prejudiced question unreliable according to situation of the container.
However, in a case of Jayadayal Peddar v. Bibi ... 2%
https://ijesc.org/upload/ee04d1c21efa9748e6df5bd628c43adc.A Legal Critical Analysis of Benami Transaction
Act 1988.pdf