DMPQ: What are the significance of passing the Benami transactions( prohibition) act, 2016? ( ECONOMY)

Benami transaction are one of the major source for parking the unaccounted wealth by the individuals and firms. Strong laws will help to curb the menace of benami transaction and hence the black money and eventually corruption. It was one of the step taken by the Govt. to deal with the issue of corruption.  The major significance can be summarised as below:

 

  • This law will have long term impacts on real estate industryin the country and will increase the practice of including the correct name in property transactions.
  • This in turn would bring transparency in residential market. With an increased transparency, the risks would be minimizedand residential properties transactions would get boost.
  • It will also boost the confidence of lenders(banks or private individuals).
  • The stringent law would also bring down the prices of real estatebecause such transactions are done by cash rich investors to park their unaccounted wealth in real estate.
  • Moreover, this will also increase the tax revenue for the Governmentby curbing unaccounted money into the system.

 

 

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