IT Dept attaches benami properties of more than Rs. 3500 crore

IT Dept attaches benami properties of more than Rs. 3500 crore

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Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes

New Delhi, 11th January, 2018

PRESS RELEASE

Income Tax Department steps up actions under Prohibition of Benami PropertyTransactions Act : Benami properties of more than Rs. 3500 crore attached

The Income Tax Department has stepped up actions under the Prohibition ofBenami Property Transactions Act (the Benami Act), which came into force w.e.f 1stNovember, 2016. The Act provides for provisional attachment and subsequentconfiscation of benami properties, whether movable or immovable. It also allows forprosecution of the beneficial owner, the benamidar and the abettor to benamitransactions, which may result in rigorous imprisonment up to 7 years and fine upto25% of fair market value of the property. The Department had set up 24 dedicated Benami Prohibition Units (BPUs) underits Investigation Directorates all over India in May, 2017 to ensure swift action in respectof Benami properties. Due to intensive efforts undertaken by the Department, provisional attachmenthas been made in more than 900 cases of properties under the Act. These include plotsof land, flats, shops, jewellery, vehicles, deposits in bank accounts, fixed deposits etc.The value of properties under attachment is more than Rs. 3500 crore includingimmovable properties of more than Rs. 2900 crore. In five cases, the provisional attachments of Benami properties, amounting tomore than Rs. 150 crore have been confirmed by the Adjudicating Authority. In onesuch case, it was established that a real estate company had acquired about 50 acresof land, valued at more than Rs.110 crore, using the names of certain persons of nomeans as benamidars. This was corroborated from the sellers of the land as well as thebrokers involved. In another case, post demonetization, two assessees were founddepositing demonetized currency into multiple bank accounts in the names of theiremployees, associates etc. to be ultimately remitted to their bank accounts. The totalamount attempted to be remitted to the beneficial owners was about Rs. 39 crore. In yetanother case, a cash amount of Rs. 1.11 crore was intercepted from a vehicle with aperson who denied the ownership of this cash. Subsequently, no one claimedownership of this cash and it was held to be benami property by the AdjudicatingAuthority. The Department is committed to continue its concerted drive against blackmoney and action against Benami transactions will continue to be intensified.

(Surabhi Ahluwalia) Commissioner of Income Tax (Media & Technical Policy) Official Spokesperson, CBDT.