In plain words: booking a flat or plot in a relative's or employee's name — to grab an allotment, stay under the radar, or park funds — is common in real estate. It can be benami.
Why real estate attracts benami issues
Property is the classic store of unaccounted wealth, and bookings are easy to make in another's name. So the sector draws attention when the person who pays and the person named in the booking differ.
Common risky patterns
- Booking multiple flats in employees' or relatives' names while funding them yourself.
- Using others' names to beat allotment limits or eligibility.
- Paying large cash components and recording a nominal buyer.
Where it stays safe
Genuine purchases — in your own name, or a spouse's/child's name from known income, or genuine joint family holdings — are not the target. The question, as always, is real ownership and lawful source of funds.
The overlapping exposure
- Benami attachment and confiscation of the property.
- Income-tax questions on the funding.
- Possible PMLA angle if the money is tainted.
For homebuyers and investors
- Buy in the name of the person whose disclosed income pays.
- Keep the payment trail through banking channels.
- Avoid using others' names to multiply bookings.
Frequently asked questions
Is booking a flat in my employee's name benami? If you fund it and keep the benefit, yes — that is a classic benami risk.
Can I book in my spouse's name? From your known income that is an express exception.
What else is at stake? Tax and possibly PMLA scrutiny.
How Vakil Help Desk helps
Vakil Help Desk advises on Benami Act notices, provisional attachment and confiscation, and defends clients before the Initiating Officer, the Adjudicating Authority and the Appellate Tribunal — often alongside linked PMLA and income-tax matters. If you have received a benami notice or are worried about a property holding, we can help.
This article is for general legal awareness, not individual legal advice. The Benami law and the case law around it continue to evolve, and the right answer depends on your facts and the current legal position. Please consult a lawyer before acting on a benami notice or transaction.