Legal Question in Real Estate Law in India

what is the position about ownership?

I purchased plot in the name of my student son & constRUCTED the house on the same.The whole of the money was spent by me only. On complition of the house I took the possession myself & the house is UNDER my POSSESSION. My son is out of the house.Is this a SHAM or A benami transation? mY SON HAS SUED ME 4 RECOVERY OF POSSESSION. What is my defencein view of benami act 1988.?


Asked on 9/13/08, 12:28 pm

3 Answers from Attorneys

Vishwa Arya Arya & Co.

Re: what is the position about ownership?

Sir:

in view of Section 4 of Prohibition of Benami Transaction Act prevailing in India, you have, in fact, no defence unless you claim to be a joint hindu family. If you have evidence to claim joint hindu family then that evidence might save you otherwise section 4 of the act prohibits to raise the defense that you spent the whole of money. The recorded owner is the true owner. another thing which comes in my mind but needs to be explored based on the facts, that, you may claim to be licencee who has developed the land by doing the construction of the house, and therefor son is not entitled to possession - in view of easement act. You need to take an expert advice. Your facts are incomplete.

Vishwa Arya

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Answered on 9/13/08, 1:02 pm
Shrichand Nahar S.V.Nahar, Advocate

Re: what is the position about ownership?

Defence would depend on two broad aspects - Actual Facts in the light of prevailing laws and Pleadings of the Plaintiff.

For this purpose, you need to consult your lawyer with all the details.

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Answered on 9/14/08, 2:11 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: what is the position about ownership?

The properties within family members are possibly protected from the Benami Prohibition Act. If you had already made a declaration before income tax authorities about your investment in the house, then your son cannot claim its title / possession.

In any case, before civil court, your son will need to prove his title to recover possession by leading evidence about the investments made for creating this property.

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Answered on 9/14/08, 4:57 am


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