Black Money in India
Benami Property
How benami property is held in someone else's name to hide the real owner, and how the Benami Transactions Act of 1988, strengthened in 2016, targets it.
Benami means “without a name”.
What it is
Property held in another person’s name, while the real owner pays and benefits.
Why
- Hide black money.
- Evade taxes or land ceiling laws.
Law
- The Benami Transactions (Prohibition) Act, 1988.
- Strengthened in 2016 with confiscation and penalties.
Exceptions
Property in a spouse’s or child’s name bought from known income is allowed.
Supreme Court
In 2022, the Supreme Court struck down parts of the 2016 amendment applying retrospectively; the Court later agreed to review this ruling.
The driver's flat
A businessman buys a flat in his driver's name to hide it; authorities later confiscate it as benami.
Thinking property in another's name is always illegal
Family property from known income is allowed.
Key takeaways
- Benami property hides real owners.
- The 1988 Act was strengthened in 2016.
- Spouse and child exceptions exist.
- Courts reviewed retrospective parts.
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