CRITICAL ANALYSIS OF BENAMI TRANSACTION PROHIBITION ACT
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Abstract
The word Benami means anonymous or nameless. Benami transaction means that the person who pays for the property is not the person who owns or holds the property. The person in whose name the property is transacted is called as the Benamidar. The benamidar just lends his name for the title deed, the person who funds the consideration for the property and holds interest in the property is called the real owner. The Benami Transactions (Prohibition) Act was enacted in the year 1988 to prohibit all benami transactions. However this Act was not comprehensive enough and failed to make an impact therefore the legislature amended the primary act in 2016. The Benami Transactions (Prohibition) Amendment Act, 2016 (“Act”) exempts some cases from the scope of Benami transactions. This paper critically analyses various provisions of the amended act and its impact on the society.
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