Markets and names

The idea of benami properties has a long and complicated legal history. Decades ago,a law commission investigation concluded that it would not be true to say that benami property transactions were entirely outside the law; indeed,in cases in which a Hindu Undivided Family was involved,there was a long tradition of benami transfers being accepted as legitimate. Yet permitting the growth of such transfers was particularly unacceptable in the days of the all-controlling state; it was clear that benami transfers would,in particular,undermine land ceiling regulation. Thus the Benami Transactions Prohibition Act,1988 was passed,to enable the state to seize such properties.

Its this law that the Centre now intends to replace,changing a few crucial parameters. One is that the burden of proving a property benami will no longer lie with the prosecution. There are also diminutions of the right to appeal,and the promise of fast-track courts which,as always,seems like an admission of defeat when it comes to questions of larger reform of the judicial process. The entire effort is part of a 2004-era UPA initiative to follow up on incomplete land reform; movement forward was much debated,but it was thought that without a clampdown on benami transactions,any such effort would be stillborn.

While it would be nobodys case that comprehensive land reform will not aid in energising Indian agriculture,the methods should be discussed in greater detail. In a post-reforms era,it is worrying that a more straightforward method is not considered the assignation of land to the property-holder through an accurate land register,and the support and incentivisation of a land market so that farmers can capitalise on their land and holdings can be consolidated. Moving agriculture into the market era needs a different,more visionary approach.