MUMBAI: With the Lok Sabha passing the Benami Transactions (Prohibition) Amendment Bill 2015, land transactions will be smoother, as the number of benami transactions is expected to decrease, according to JLL India chief Anuj Puri.
“Data on transactions is difficult to come by, and we expect the amendment will have a greater impact here. It is a well-known fact that land transactions in India take an average of 1-2 years for completion,” he said.
With outright purchase of land no longer viable for most developers, the joint venture route has been adopted. Post multiple discussions on revenue share and complicated interpretations of permissible FSI, it is very often concluded that the land title itself is not clear. Single ownership titles and clarity of titles will hopefully see the light of day with the implementation of the new amendments.
“This will help developers aiming for a quick and successful closure of joint venture transactions in land and open up land parcels for residential development. Exits by funds participating in transactions will be quicker,” added Puri.
The bill was passed last month with the intent of bringing unaccounted money into the system, as well as seizing benami property and prosecuting those indulging in such activities. The three-fold objective is – Amending the definition of benami transactions, establishing adjudicating authorities and setting up an Appellate Tribunal to deal with benami transactions, and specifying the penalty for entering into benami transactions.
Credits ET Realty