Legal issues: "Benami property"
Dear Sir, I'm Santosh Kumar ,I am working in Japan from last three years. Last week, I bought 2000 Sq ft plot and registered in the name of my father because of my overseas contract. That property was registered in Registrar Office in the presence of landlord and other two witnesses . Whereas all payments to landlord was done by me from my account by using net banking. Just two days before my friend told me about Benami Property Act 2016.So that now I am worried about my property . Sir , Please make me clear about these three things : 1. As per Benami Property Act 2016 ,my registration in name of my father is valid or not ? If not then how to solve this issue ? 2. That property can transferred into my name after 4 or 5 months ? 3. How much the fees for registration ? Thank you very much. Waiting for your reply. Regards Santosh Kumar
Benami in Hindi means without name. So, a property bought by an individual not under his or her name is benami property. It can include property held in the name of spouse or child for which the amount is paid out of known sources of income. The person on whose name the property is purhcased is called benamdar. The benami transactions include buying assets of any kind — movable, immovable, tangible, intangible, any right or interest, or legal documents.
Benami Transactions (Prohibition) Amendment Act, 2016 came into force on November 1, 2016. The PBPT Act defines benami transactions, prohibits them and further provides that violation of the PBPT Act is punishable with imprisonment and fine. The PBPT Act prohibits recovery of the property held benami from benamidar by the real owner. Properties held benami are liable for confiscation by the Government without payment of compensation.
Under the Current Act a benami transaction, is defined as a transaction where in a property is held by or transferred to a person, but has been provided or paid by another person. The definition also includes property transactions where-
The following transactions are not considered benami-
Thus answering your questions in a hierarchical way-
- Portray it as a gift deed to your father by taking help of a lawyer
- Change the status of the property from being a sole proprietorship of your father to a jointly held property or a trust held property- with your father as the intended beneficiary
Book a phone consultation with a top-rated lawyer on Lawfarm.