Q. Is this property be considered under benami property act

Question

Dear Sir,

I am slightly confused whether the issue I have comes under benami property or lease act.please guide 

My grandfather did lease registry of his 2 property’s with some other person for 50 years in 1940 and 1950 saying that after the completion of lease time properties will be either given back to the owners family’s or again lease can be extended as per owners families will.

Now after the completion of lease, when we contacted family members of the person whome we did registery with ( since he is no more), they were behaving as if they don’t know about the lease and told us they dont know anything about any registory and the property they are living in is given to them by there grandfather.

We talked to them but they were not ready to listen any thing. We have the registered leases with us. My uncle tried legal way also by serving them notices from court. But since my uncle died in accident so the case doesn’t go in any body’s favour and got closed.

Let me know what will be the right way of taking this case forward.

Hope to have the right guidance on this platform

Answer 1

In my view... only a civil suit can help

Under benami.. property would be confiscated by government... would not come back to you

Answer 2

Dear Sh. Rehan Sahab,

Though, Sh Pramod Jain ji has already correctly suggested that you need to consult a civil lawyer to get solution of the issue you are facing, but I am sure you already knew to this extent.

Therefore, I feel that your purpose of raising this issue here at this forum dealing with Benami Law seems to be different and thus your underlying question are also different. I shall make an attempt to answer such question as under:

1. This property does not seem to be benami property for many reasons. The transaction is even prior to 1988 as per facts narrated here.

2. However contrary can be proved by the prosecution if some thing is brought on record suggesting that 'Lease Deed ' is just a facade for which consideration has been paid (after 1988) by the user of the property and thus beneficially held by him. Undoubtedly law is not very clear and yet to evolve on the basis of judgments by courts or amendments by legislature or both.

3. If it is held to be 'Benami Property', it would simply go to the government and Benamidar and Beneficial owners as well as persons found to be involved in abetting it all would be liable for fine upto 25% of market value of property as well as imprisonment upto 7 years.

4. Properly strategise civil litigation before filing any civil suit/WRIT etc in an unprepared manner.

Please be more clear for further answer.

Admittedly, for a keen lawyer , it would be an interesting and thrilling assignment of litigation.

Regards

Ca Ashwani Taneja, Advocate

( Ex- Member Income Tax Appellate Tribunal)

Answer 3

It looks like you are a legal hier of the original property owner and suffering from these procedure because others on lease refuse to give you possession back and gave an answer - it is a gift by their grandfather (who did lease with your grandfather).

You can approach Municipal Corporation for copy of last Registry executed on the land, Jamabandi (chain record how and when the property was sold / transferred) and then you will have more clear picture.

For any detailed discussion, feel free to discuss the same on my email ID rahul@mrt-ca.in