benami The word benami is used to denote two classes of transactions which differ from each other in their legal character and incidents. In one sense it signifies a transaction which is real, as for example, when A sells properties to B but the sale deed mentions X as the purchaser. Here the sale itself is genuine, but the real purchaser is B. X being his benamdar. This is the class of transaction which is usually termed as benami. Benami is mere name lending. His name is simply an alias for that of the other person beneficially interested. But the word benami is also occasionally used, perhaps not quite accurately, to refer to a sham transaction, as for example, when A purports to sell his property to B without intending that his title should cease or pass to B.