Benami Property Law And Its Effect On Real Estate Transactions
- IJLLR Journal
- Mar 11
- 1 min read
Shruti Vijay Naikude, Jindal Global Law School
ABSTRACT
The Prohibition of Benami Transactions Act, 2016 aims at eliminating concealed property ownership and curbing the circulation of unaccounted wealth. Real Estate has historically been the primary tool for benami transactions. It allows individuals to keep black money, manipulate property ownership and obscure beneficial ownership. The Act introduces a comprehensive mechanism with strict penalties and institutional bodies such as Initiating Officer, Adjudicating Authority, Appellate Tribunal.
The paper analyses the effect of the Act on real estate transactions, market behaviour and the confidence of genuine investors. It examines how the Act has influenced title verification practices, documentation standards, loan approvals and compliance expectations for developers as well as the buyers. I have used a mixed methodology of doctrinal analysis of statutes cases and government reports along with limited empirical component, for which there was a small survey that was conducted. The main aim of the survey was to gauge the awareness and the perceived impact. Thus, this paper highlights the strengths, gaps and unintended consequences of the Benami framework. It ultimately argues that although the Act has improved market transparency, India still needs more coherent property law reforms and clearer guidelines for genuine transactions. It is essential for a clean and accessible real estate system.
Keywords: Benami Transactions; Real Estate Law; Property Ownership; 2016 Amendment; Beneficial Ownership
