Question

In order to avoid the provisions of the Land Ceiling Act, which among the following strategies was adopted by the landowners?

• A. Benami transfers
• B. Contract farming
• C. Abolition of zamindari system
• D. Pay tax

Hint:

Understanding the purpose and loopholes of major legislations is crucial. The term 'Benami' is key in the context of evading property and tax laws in India, and it's directly linked to the failure of land ceiling policies to be fully effective.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
The question asks about a specific method used by landowners to circumvent the Land Ceiling Act. This act was part of land reforms in post-independence India, aimed at limiting the maximum amount of land an individual or family could own to promote more equitable distribution.
Step 2: Detailed Explanation:
The Land Ceiling Act imposed a statutory limit on the amount of agricultural land that could be owned.
To bypass this law, large landowners adopted several strategies. The most common one was the Benami transfer.
A 'Benami' transfer (literally "no name" or "in the name of another") is a transaction where property is transferred to one person, but the payment is made by another person. In this context, landowners would register their excess land in the names of relatives, friends, servants, or even fictitious persons to avoid having it declared as surplus and confiscated by the state. However, they retained effective control and enjoyment of the land.
The other options are incorrect. Contract farming is a different agricultural arrangement. The abolition of the zamindari system was a reform measure itself, not a way to avoid ceilings. Paying tax is a legal obligation, not a strategy to evade land ownership limits.
Step 3: Final Answer:
Benami transfers were a widely used illegal strategy by landowners to evade the provisions of the Land Ceiling Act.