The Benami Transactions (Prohibition) (Amendment) Bill, 2015

Benami transactions

India has grappled with black money problems for decades, and no sector has been more implicated than the real estate sector. The word "benami" means anonymous or nameless, and in India the term "benami transaction" is used to describe a transaction where one person pays for property but the property is transferred to/held by somebody else. The person who pays for the property is the real beneficiary (either at present or at some point in the future) but is not recorded as the legal owner of the property. This enables the payer/beneficiary to achieve undesirable purposes such as utilizing black money, evading the payment of tax and avoiding making payments to creditors.