Benami Transaction Act prohibits all illegal benami transactions and imposes heavy penalties as well imprisonment of up to 7 years for the violation of the act. The act defines a transaction where a property is held by or transferred to a person but paid by another or benami transaction, this gives a right to recover any property held benami. It also includes various forms of punishment like confiscation of benami property, fines of up to 25% of fair market value, and up to 7 years of imprisonment.
