Renting Benami Property in India to Sections of Society

Benami property in India may soon be put to good use by the central government. The plan by the government is to monetize the confiscated Benami property in the country and to erect affordable houses in its place instead. This is expected to tackle the issue of housing shortages in the country by building a larger number of housing units in towns and cities.

Table of content Buying Property in India May Not Burn a Hole in Your Pocket Anymore 6 Major Trends Anticipated For Indian Real Estate In 2017 Why Property Indexes do not reveal the True Picture of Real Estate in India?

The Benami Properties Act

Additional options are laid open by the implementation of the Benami Properties Act which pertain to renting properties to Below Poverty Line (BPL) families.  Within the rules of the Benami Properties Act would be added a provision, which would allow the government to rent out properties that cannot be confiscated. The properties under this added provision of the Benami Properties Act could be rented by the central or state government’s as rental housing for Middle Income Group families, Lower Income Group members of society, or Economically Weaker Sections. The decision as to which section of society such properties should be rented to would depend upon the location of the properties and upon the suitability of the properties for the groups mentioned. Real estate in India will become further demarcated based upon the prestige of the mentioned properties. 

Deciding To Whom to Rent

While Benami property in India is found in many parts of the country, they can only seriously be rented to MIG families if such properties are at localities that this segment finds favorable. A middle-income group family would have more means at their disposal and hence a larger range of selections from which to choose a new home. Such families would expect reasonable access to educational facilities and to medical facilities.

A lower income group’s selection pool from which to choose a new home will be more restricted than that of a MIG family. Such families may choose to live in a house that does not have ready access to a good school or college in the vicinity and they may not require real estate in India that provides adequate access to medical facilities either.

Families that are a part of the economically weaker sections of Indian society may simply be pleased to have a roof over their heads and enjoy living in real estate in India that provides privacy. If such a locality is in an upmarket locality then member of the EWS may benefit from greater access to important civic infrastructure.