WHAT IS BENAMI TRANSACTION?

Benami purchases are purchases in false name of another person, who does not pay the consideration but merely lends his name, while the real title vests in another person who actually purchased the property and he is the beneficial owner. Benami transactions used to take place to evade law of perpetuity, because of parda system, to avoid annoyance, Zamindar’s desire to avoid indignity and legal disability, mysterious desire etc.

For more details refer :-

The Benami Transactions (Prohibition) Act, 1988

www.vakilno1.com/bareacts/Benamiact/introduction.htm