Report No. 57

Benami Transactions

Contents
Chapter 1	Introduction
1.1 - 1.4	Genesis and scope of the Report
1.5.	Meaning of 'benami transaction
1.6.	Risk offset by greater advantage
1.7.	Factors accounting for the origin of benami
1.8.	Judicial recognition of benami
1.9.	Essence of benami transaction
1.10. - 1.12.	Benami transactions common in India
1.13. - 1.14.	Legality of benami transactions
1.15.	Resort to benami to commit fraud
1.16.	Legislative inroads
1.17.	Legal and factual controversies
1.18.	Scope of rest of the Report
Chapter 2	Benami Transactions in General
2.1. - 2.2.	Nature of a benami transaction
2.3.	Principle that transaction is presumed to be for benefit of person providing money
2.4.	Benamidar representing the true owner
2.5. - 2.6.	Position as between real owner and third parties
2.7.	Expression Benami not frequently used in statute law
2.8.	Section 82, Trusts Act-Resulting Trust
2.9. - 2.10	Uncertainty as to how far doctrine of benami survivors independently of the Trusts Act
2.11 - 2.16.	Views that section 82 attend burden of proof
Chapter 3	Benami Transactions in English Law
3.1.	Introductory
3.2.	General rule in England
3.3.	Purchase in another's name a common form of resulting trust in England
3.4.	English rule based on presumption
3.5.	Supply of money basis of rule
3.6.	Presumption rebuttable-Presumption of advancement
3.7.	Exception as to child based on moral obligation
3.8.	Presumption of advancement also rebuttable
3.9. - 3.10.	No rebuttal where fraudulent or illegal purpose
3.11.	Purchase in name of stranger-English law
3.12.	Presumption where transfer in favour of relation and English law
3.13.	Indian law different
Chapter 4	Statutory Modifications Relevant to Benami
4.1.	Statutory modifications of general principle recognizing benami
4.2.	Section 66, Civil Procedure Code
4.3. - 4.5.	Section 281A, Income-tax Act, 1961, inserted in 1972
4.6.	Provisions in the Income-tax Act
4.7 - 4.9	Section 41, Transfer of Property Act
4.10.	Principle well established
4.11.	Section 84, Trusts Act-Transfer for unlawful purpose
4.12.	Principle
4.13.	Indian case law as to illegal transfers
4.14. - 4.15.	Position where illegal purpose not carried out
4.16.	The transfer of property under illegal Transactions-position in England
4.17.	Sections 422-424, Penal Code
Chapter 5	Summary of Present Position
5.1.	Introduction
5.2.	Summary of present position-in general
5.3.	Effect of benami transfer
5.4.	Statutory provisions reinforcing benami
5.5.	Statutory provisions modifying benami
5.6.	Provisions of a special nature wider than benami
5.7.	Unlawful transfers
5.8.	Fraudulent transfers
5.8.	Civil Procedure Code
5.9.	Criminal liability
5.10.	Position with reference to different types of transfers
5.11.	Analysis of position in various situations
5.12.	Illustrations
5.13.	Question of evasion of tax considered
Chapter 6	Amendments in The Law
6.1. - 6.2.	Introduction
6.3.	Possible alternative for regulating benami transaction
6.4. - 6.5.	Questionnaire
6.6. - 6.11.	Views as to first alternative
6.12. - 6.14.	Views as to second alternative
6.15.	Views as to third alternative
6.16. - 6.17.	Views for maintaining present position
6.18.	Alternative considered
6.19.	General Observations
6.20.	Object of checking evasion of taxes already achieved
6.21.	Objective of avoidance of litigation
6.22.	Tests for deciding whether a transactions is benami
6.23.	Various alternatives considered
6.24.	First alternative not likely to be effective
6.25.	Second alternative
6.26.	Third alternative
6.27.	Second alternative-refusal to recognise benami preferred
6.28.	Exception recommended for certain cases
6.29.	Exception for past transactions
6.30.	Repeal of certain provisions
6.30A.	Saving for section 53, T.P. Act or for transfers for an illegal purpose
6.31. - 6.32.	Constitutional aspect of proposed provision
6.33.	Recommendation