Legal Question in Real Estate Law in India
correct position.
DDA prospectus 4 the allotment of the flats 2008 expressly allow anybody 2 apply 4 any size of the flat irrespective of one''s income.The applicant b just above 18 years of age.There is a prohibition 4 those who, in the past, has ever been alloted a flat by DDA.iN VIEW OF THE FACT THAT i already own a flat alloted by DDA IN 1974 i BECOME DISQUALIFIED.However, I WANT ANOTHER FLAT. in order 2 circumvent the provision 4 my disqualification I have applied in the name of my student son with no income of his own.The full initial money is paid by me from my account.Is that legally correct in view of prohibition of benami transation act 1988 or I M DOING SOMETHING ILLEGAL. On allotment who will b the real owner in the eyes of law assuming that I ,HAVING spent whole the money on the acquisition of the flat will TAKE / retain THE POSSESSION MYSELF.
3 Answers from Attorneys
Re: correct position.
Based on the law laid down in Rajam Ammal v. P.K. Pillai, AIR 1991 Mad 310 it could not be said to be a Benami Transaction in as much as that the property had been purchased for the benefit of the son. But in doing so you will be hit the provisions of DDA allotment scheme i.e.you are having a DDA flat and cannot own another.
Re: correct position.
there is nothing illegal; in law your son will be entitled to ownership. if you do not want your son to be the owner, you may draw a family settlement for transfer of ownership in the name of HUF or any other family member.
Re: correct position.
In view of provisions of Benami Act with provisions of DDA, person in whose name flat is allotted would be owner/holder.
The money paid by you may either be a Gift or Advance to your son.
Related Questions & Answers
-
Transfer of Property and Indian Contract Act What is the difference between... Asked 9/13/08, 6:18 am in India Real Estate and Real Property