Report No. 57
5.3. Effect of benami transfer.-
The effect of a benami transfer is as follows1:-
(a) A person does not acquire any interest in property by merely lending his name;
(b) The benamidar has no beneficial interest though he may represent the legal owner as to third persons.2
(c) A benami transaction is legal, except in certain specified situations.
1. Gour Hindu Code, (1938), p. 726, para. 219.
2. See paras. 2.11 to 2.14, supra.