What is the meaning of the term Benami?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Transactions made in the name of a fictitious or relatively insignificant person, whereas the real beneficiary remains unnamed.
Benami, literally ‘anonymous’, is a term used in Hindi and several other Indian languages for transactions made in the name of a fictitious or relatively insignificant person, while the real beneficiary remains unnamed. Zamindars of Bengal used such benami purchases to buy back their own estates at auctions.
Option (1) Transactions made in the name of a fictitious or relatively insignificant person, whereas the real beneficiary remains unnamed. — Correct. This is the meaning given above.
Option (2) In the name of a person called ‘Benam’. — Incorrect. Benami is not anyone’s name; the word itself means anonymous.
Option (3) Transaction is done by and in the name of the real owner. — Incorrect. This is the opposite of benami, where the real owner’s name is kept hidden.
Option (4) The special transactions where the real beneficiary remains traceable and accountable. — Incorrect. In a benami transaction the real beneficiary stays unnamed, so he cannot easily be traced.
NCERT (2026-27): “1.5 The zamindars resist … Such transactions happened on a grand scale. Between 1793 and 1801 four big zamindaris of Bengal, including Burdwan, made benami purchases that collectively yielded as much as Rs 30 lakh. Of the total sales at the auctions, over 15 per cent were fictitious.… Benami, literally anonymous, is a term used in Hindi and several other Indian languages for transactions made in the name of a fictitious or relatively insignificant person, whereas the real beneficiary remains unnamed.” |