Section 2 - Definitions

Benami property defined as holdings where one person holds property but another provides consideration, with specified exceptions.

The Act defines a benami transaction as a transaction where property is held by one person while consideration is paid by another and the property is held for the benefit of the consideration-provider, including transfers in fictitious names or where the ostensible owner is unaware or the consideration-provider is untraceable. Exceptions include recognised Hindu undivided family holdings, fiduciary relationships (trustees, executors, partners, specified directors and depository agents), close-family name-holdings funded from known sources, and part-performance contracts satisfying consideration, stamp duty and registration. The Act also defines institutional roles, attachment, property, fair market value and related procedural terms.