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{{infobox | {{infobox | ||
| nameofpractice =Benāmi | |||
| flagemoji =🇮🇳 | |||
| definition =In Hindu law, a transaction or property made or held under a fictitious name or that of a third party, who acts as ostensible owner on behalf of the real owner | |||
| location =India | |||
| imagemap =India map.png | |||
| clusters = | |||
[[:Category:Market|Market]] – [[:Category: Functional ambivalence| Functional ambivalence]] – [[:Category: Gaming the system| Gaming the system]] – [[:Category: Camouflage| Camouflage]] – [[:Category: Intermediation| Intermediation]] | |||
| categories = | |||
[[:Category:India|India]] – [[:Category: South Asia| South Asia]] – [[:Category: Hindu law| Hindu law]] – [[:Category: Property| Property]] – [[:Category: Ownership| Ownership]] – [[:Category: Third party| Third party]] – [[:Category: Concealment| Concealment]] – [[:Category: Triangle| Triangle]] | |||
| authorofpiece =Kalindi Kokal | |||
| authorinstitution =Max Planck Institute for Social Anthropology, Halle-Saale, Germany | |||
A ''benāmi'' transaction is one where a person purchases a property in the name of another without intending to transfer any beneficial interest in the property to the other person. The person in whose name the property is bought is known as the ''benāmidār'' and the person who advanced the consideration for the property (and is the real owner) is described as the holder of beneficial interest in the property (Law Commission of India 1988<ref>Law Commission of India. 1988. 'One Hundred Thirtieth Report on Benami Transactions - A Continuum.' 130. Law Commission of India. http://lawcommissionofindia.nic.in/101-169/report130.pdf.</ref>; Mitra 2010, 448–49<ref>Mitra, A. 2010. Law of Possession And Ownership Of Property. Allahabad: Sodhi Publications.</ref>). The term ''benāmi'' can be broken up to literally translate as ‘without name’ (''be'' being ‘without’, and ''nām'' being ‘name’). The origin of the expression ‘''benāmi''’ is also traced back to the Persian language, in which the term means ‘fictitious’ (Mitra 2010, 448<ref>Mitra, A. 2010. Law of Possession And Ownership Of Property. Allahabad: Sodhi Publications.</ref>). A ''benāmidār'' comes very close to the practice of [[stróman]] in Hungary (see this volume), acting like the latter to conceal the identity of the true owner of the property, primarily from state agencies. | | authorwebsite =[https://www.eth.mpg.de/kokal Profile page at MP]}} | ||
<big>'''By Kalindi Kokal, Max Planck Institute for Social Anthropology, Halle-Saale, Germany'''</big> | |||
[[Category:Market]] | |||
[[Category: Functional ambivalence]] | |||
[[Category: Gaming the system]] | |||
[[Category: Camouflage]] | |||
[[Category: Intermediation]] | |||
[[Category:India]] | |||
[[Category: South Asia]] | |||
[[Category: Hindu law]] | |||
[[Category: Property]] | |||
[[Category: Ownership]] | |||
[[Category: Third party]] | |||
[[Category: Concealment]] | |||
[[Category: Triangle]] | |||
[[Category:Entry]] | |||
[[Category: Volume 2]] | |||
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|style="font-size:1.1em;"| A ''benāmi'' transaction is one where a person purchases a property in the name of another without intending to transfer any beneficial interest in the property to the other person. The person in whose name the property is bought is known as the ''benāmidār'' and the person who advanced the consideration for the property (and is the real owner) is described as the holder of beneficial interest in the property (Law Commission of India 1988<ref>Law Commission of India. 1988. 'One Hundred Thirtieth Report on Benami Transactions - A Continuum.' 130. Law Commission of India. http://lawcommissionofindia.nic.in/101-169/report130.pdf.</ref>; Mitra 2010, 448–49<ref>Mitra, A. 2010. Law of Possession And Ownership Of Property. Allahabad: Sodhi Publications.</ref>). The term ''benāmi'' can be broken up to literally translate as ‘without name’ (''be'' being ‘without’, and ''nām'' being ‘name’). The origin of the expression ‘''benāmi''’ is also traced back to the Persian language, in which the term means ‘fictitious’ (Mitra 2010, 448<ref>Mitra, A. 2010. Law of Possession And Ownership Of Property. Allahabad: Sodhi Publications.</ref>). A ''benāmidār'' comes very close to the practice of [[stróman]] in Hungary (see this volume), acting like the latter to conceal the identity of the true owner of the property, primarily from state agencies. | |||
|} | |||
Prior to 1988, ''benāmi'' transactions were a part of Indian law. However, in May 1988 following recommendations made by the Law Commission of India, the President of India passed an Ordinance entitled ‘Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988’ whereby ''benāmi'' transactions ceased to be recognised as legal. A law entitled the ‘The Benami Transactions (Prohibitions) Act, 1988’ (‘The Act’) was brought into force soon thereafter. The Act defines ''benāmi'' transactions as ‘… any transaction in which property is transferred to one person for a consideration paid or provided by another person’(Government of India 1988, sec. 2 (a)<ref>Government of India. 1988. Benami Transaction (Prohibition)_ Act, 1988 - Benami Transaction_Prohibition_ Act1988.pdf. http://finmin.nic.in/law/Benami%20Transaction_Prohibition_%20Act1988.pdf.</ref>). | Prior to 1988, ''benāmi'' transactions were a part of Indian law. However, in May 1988 following recommendations made by the Law Commission of India, the President of India passed an Ordinance entitled ‘Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988’ whereby ''benāmi'' transactions ceased to be recognised as legal. A law entitled the ‘The Benami Transactions (Prohibitions) Act, 1988’ (‘The Act’) was brought into force soon thereafter. The Act defines ''benāmi'' transactions as ‘… any transaction in which property is transferred to one person for a consideration paid or provided by another person’(Government of India 1988, sec. 2 (a)<ref>Government of India. 1988. Benami Transaction (Prohibition)_ Act, 1988 - Benami Transaction_Prohibition_ Act1988.pdf. http://finmin.nic.in/law/Benami%20Transaction_Prohibition_%20Act1988.pdf.</ref>). | ||
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The new bill is unlikely to end the practice of ''benāmi'' as these transactions exist where customary beliefs and practical efficiency coincide, and at the same time are reinforced by the dynamics of social structures that actually facilitate such transactions. Section 24 of the new Bill on benāmi transaction provides for the appointment of an ‘Initiating Officer’, who is entitled to investigate transactions he suspects to be ''benāmi'' (Parliamentary Legislative Research 2016<ref>Parliamentary Legislative Research. 2016. 'PRS | Bill Track | The Benami Transactions (Prohibition) (Amendment) Bill, 2015.' http://www.prsindia.org/billtrack/the-benami-transactions-prohibition-amendment-bill-2015-3789/.</ref>). The nature of ''benāmi'' transactions often makes them socially legitimate within communities, thus making it very challenging to trace such transactions; in most instances they are carried out between people connected through close family relations or complex networks of reciprocities. As the monetary value of land increases rapidly in India, the government needs to devise more strategic initiatives to regulate this practice rather than trying to ban it completely. | The new bill is unlikely to end the practice of ''benāmi'' as these transactions exist where customary beliefs and practical efficiency coincide, and at the same time are reinforced by the dynamics of social structures that actually facilitate such transactions. Section 24 of the new Bill on benāmi transaction provides for the appointment of an ‘Initiating Officer’, who is entitled to investigate transactions he suspects to be ''benāmi'' (Parliamentary Legislative Research 2016<ref>Parliamentary Legislative Research. 2016. 'PRS | Bill Track | The Benami Transactions (Prohibition) (Amendment) Bill, 2015.' http://www.prsindia.org/billtrack/the-benami-transactions-prohibition-amendment-bill-2015-3789/.</ref>). The nature of ''benāmi'' transactions often makes them socially legitimate within communities, thus making it very challenging to trace such transactions; in most instances they are carried out between people connected through close family relations or complex networks of reciprocities. As the monetary value of land increases rapidly in India, the government needs to devise more strategic initiatives to regulate this practice rather than trying to ban it completely. | ||
==Notes== | ==Notes== | ||