The amendment in Benami Transaction Act is a step in right direction to improve the overall confidence of the real estate buyers. All real estate transactions shall be in the name of the actual owner who is paying the amount.
It would make real estate operations easier and establish professionalism increase transparency and clarity in ownership of the property. It would also put the restrictions on black money into the reality market. It will bring the much needed confidence in investors . We may face an increase in real estate transactions prices. The realtors entering into Benami Transactions may have to face punishment and pay the hefty amount as penalty. The act should impact the real estate transaction volume especially land transactions and real estate prices adversely.
Benamidar, or the beneficial owner or any other person who abets any person to enter into such a transaction, will face rigorous punishment ranging from a year to seven years in jail. These persons will be liable for a fine of up to 25 per cent of the fair market value of the property. And, Those giving false information may face Imprisonment from six months to five years. Up to 10 per cent of the fair market value of the property. This act would be applicable on any kind of assets movable, immovable, tangible, intangible, corporeal or incorporeal.
