400 benami deals spotted, Rs 530 crore properties seized

May 25, 2017

New Delhi, May 25: The income tax department identified more than 400 benami transactions up to May 23 and immovable properties were attached in 40 cases valued at over Rs 530 crore as the authorities stepped up their fight against black money.

benami

Sources said 200 other properties were also identified as part of an ambitious crackdown on benami assets. They added that searches were conducted on 10 senior government officials during the past one month.

Provisional attachment of properties, a precursor to final attachment, was done in more than 240 cases and the market value of these properties was estimated at more than Rs 600 crore, the tax department said in a statement.

The drive against benami transactions includes deposits in bank accounts, plots of land, flats and jewellery. The tax authorities have also set up 24 dedicated benami prohibition units across the country for better implementation of the Benami Act.

Immovable properties have been attached in Kolkata, Mumbai, Delhi, Gujarat, Rajasthan and Madhya Pradesh. In one case, in Jabalpur, the benamidar, a driver, was found to be the owner of land worth Rs 7.7 crore.

The real owner is a MP-based listed company, his employer. In Mumbai, a professional was found to be holding several immovable properties in the name of shell companies, the tax department said.

It added that, in another case, in Sanganer, Rajasthan, a jeweller was found to be the owner of nine immovable properties in the name of his former employee, a man of no means.

The I-T department initiated actions under the new Benami Transactions (Prohibition) Amendment Act, 2016 in November last year.

According to the Act, a benami property includes movable or immovable property, and tangible or intangible property, among others. It empowers provisional attachment and confiscation of such properties.

It also allows for prosecution of the real owner, the benamidar, the abettor and the inducer to benami transactions, which may result in rigorous imprisonment of up to 7 years and fine of up to 25% of the property's fair market value .

The government is keen to implement the new Benami Act in an effective manner with visible outcomes on the ground.

These benami prohibition units are under the overall supervision of the principal directors of investigation in the I-T department to enable swift action and followup, particularly in cases where criminality has been detected, the department said.

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