1. the flat was purchased by your grandfather in the name of your uncle
2. this is a benami transaction which is prohibited by law under the Benami transaction act
3. real owner is the grandfather and the benamidar or name lender is the uncle
4. had your grandfather been alive and filed a suit against your uncle on the ground that he wants the property back from his son as it was purchased in the son's name but the consideration was paid by grandfather - such a suit would not be allowed
5. similarly your uncle would not be allowed to take any defense on the ground that the property was bought benami in his name - for instance if there is an income tax attachment on the property for non payment of taxes, and the income tax takes legal action against the uncle - your uncle cannot say that this is not my property and that it was purchased benami in my name and therefore the attachment should be removed - this is also not permitted
6. so the real owner and benamidar cannot plead benami in any legal proceeding - but this is not applicable to a third party
7. in your case, your father and aunt will have to file a suit against your cousin saying that the real owner of the property is actually your grandfather and not the uncle - the possession is with your parents and they are paying the maintenance and other outgoings -
8. therefore after demise of your grandfather, the flat will go to his legal heirs i.e. two sons and daughter in equal proportions
9. therefore the legal heir of one son i.e your cousin could not have transferred the flat to his name as your father and aunt have equal 1/3rd share in the flat
10. the builder will recognise only the person who stands as an owner in the society records
11. therefore the builder will give possession of new flat to your cousin and not to your dad or aunt as they are not reflected as owners in society records