A benami property is an anonymous property – that is, the owner of the property is not known or is under the name of a fictitious person or a person other than the actual person owning the property.
Property buyers in Mysore must know that a benami transaction is the transaction of a benami property. Benami properties include both tangible and intangible, movable or immovable, tangible or intangible, assets such as flats, houses, land, etc. and also any right or interest in such property.
Originally, the Benami Transactions (Prohibition) Act was enforced in 1988 to curb benami transactions and emphasise on the true beneficiary of a benami property and avoid corruption in the form of tax evasion, money laundering (illegal conversion of black money into white money), etc. In fact, the term ‘benami’ literally translates to ‘without name’ or roughly as ‘anonymous’ in Hindi language.
On November 1, 2016, Benami Transactions (Prohibition) Amendment Act was passed to include stricter rules for the existing act of 1988. This was done just a few days before the Government of India announced the demonetisation of banknotes of INR 500 and INR 1,000 which was done to bring into light black money hoarders in the country.
On a brighter side, going for RERA-approved properties with a clear owner will keep property buyers in Mysore out of any legal consequences. While the Benami property law mainly targets intentional fraudsters, it may sadly affect unsuspecting Benami property owners who would have purchased a Benami property without knowing that it was one. A real estate consultant can be more than helpful in making you understand the law better and know your rights that can protect your actions.