Benami Transaction (Prohibition) Act and Transfer of Property Act

Abstract

In the wake of going of the Benami exchange Amendment Act 2016, the extent of Section 41 of Transfer of Property Act, 1882 has gotten constrained. The object of Section 41 of Transfer of Property Act is to secure the enthusiasm of the blameless outsiders who with sensible consideration and in accordance with some basic honesty go into an exchange with the ostensible owner, where the real proprietor through unequivocal affirmation or understood through his direct approves the ostensible proprietor to move the property. After the passing of Benami exchange (prohibition) Act, the real proprietor has gotten ostensible proprietor aside from now and again. The transferee who purchases the property from the ostensible proprietor can't exploit Section 41 of transfer of property Act, 1882 aside from when the ostensible proprietor is the spouse or unmarried daughter or somebody in guardian connection with the real owner, as these are viewed as special cases to benami exchanges . In different case laws it has been seen that the intention behind the benami exchange must be proved. Be that as it may, this will be to the disservice of the transferee or the individual claiming the exchange to be benami. As they won't just need to demonstrate that their privileges are being damaged yet will likewise need to demonstrate the thought process behind such an exchange, which is a troublesome undertaking to do. In this way it would be hard for such people to get equity.

Keywords: Benami Transfer, Transfer of Property Act1882

JEL Classification: D24, D29