Day 54 – Q 4. What do you understand by benami transactions? How does it operate?
4. What do you understand by benami transactions? How does it operate?
बेनामी लेनदेन से आप क्या समझते हैं? यह कैसे संचालित होता है?
Introduction
Benami Transaction, in common parlance, refers to a transaction in which a property is transferred in the name of a person, whereas the consideration for the same is paid by some other person.
Body
Operation of benami transactions
1.Naamdar – He\she is the person on whose name the property is purchased. He can be wife\husband, relatives, poor cultivators depending upon the moneylender, offshore fictitious person etc. -which even may not exist, is unaware or coerced.
- Benaamdar – He\she is the person who actually owns the property. This may be in Indian context anybody corporate, money lender, politician, businessperson. The main motive is to invest Illegal and unaccounted money into economy and get returns off.
- Finally by various methods of coercion, or shelling of companies, false records, bribe etc. The property is purchased but remain under control of benamdaar.
Consequences
- Black money
- Sky rocketing prices of property
- The common man suffers to afford a House
- Loss of revenue to government
- Money can be later used to illegal activities
Conclusion
Real Estates Regulation act , Benami transition (prohibition) Act and linking Aadhar with PAN has led to reduction in this illicit corrupt business as can be seen from slump in the market.
Best answer: Suraj Sharma
