Benami ownership means a property ownership system where the name of the actual owner is not used and the name of another individual or any fictitious or non-existent individual or entity is used for this purpose.
Benami ownership is used to indicate any property ownership status or acquisition where the property holding is under a fictitious or another third party name instead of the actual owner.
Benami property transactions have been seen throughout the years in the real estate market. There are specific laws pertaining to the same as well. These transactions happen when the actual buyer does not legally acquire ownership status. Instead, a third-party or any other entity is designated as the property owner. This also happens when any fictitious entity or individual owns a property. Benami property is also where the owner does not have any knowledge of having property ownership, or the one giving the consideration does not exist or cannot be found. However, properties held by HUF members for the benefit of the entire family will not be taken as Benami properties.
