What is Benami Jayedad transaction Act?

Benami Jayedad or Benami property is a land, plot of land, building or any premises which is purchased by a person who makes the payment for the Benami Jayedad but it is registered in someone else name.

The word Benami is a Persian word which means nameless or anonymous; there are lots of words, which the word Benami covers. For example, unknown, unidentified, unnamed and unspecified. This is a legal term used in transactions, especially those transactions which are related to real estate or property.

The Benami Jayedad or Benami property act prohibits people from purchasing illegal properties but due to insufficient strictness this act was not being implemented because of corruption and black money hoarding in India.

The Benami Jayedad bill was amended recently with new clauses and articles and was introduced in Lok Sabha on May 13, 2005. The amendment was carried out in old Benami Jayedad act 1988.

The main purpose of amending Benami Jayedad or Benami property is to confiscate the properties of people, which is one of the main steps to curb black money and bring it back to government's exchequer.

Indian government under the leadership of Prime Minister Narendra Modi banned 500 and 1000 note and introduced new 2000 note in the market.

The new note has some new features with some new languages and new colours on the front side and backside.

Benami is a Persian word and Jayedad is a Hindi word which means property. Benami Jayedad or Benami property was introduced with new definition to deal Benami properties.

Under new benami property amendment act, there will be some departments like an Appellate Tribunal to scrutinize and investigate such transactions. Their duties will be to define the document of the transaction and specify the penalty for each defaulter.

So we can conclude that under this act, the real beneficiary is going to get penalized and imprisoned.