The Income-tax Department (ITD)
has initiated actions under the new Benami Transactions (Prohibition) Amendment
Act, 2016 (the Act) w.e.f. 1st November, 2016. The Prohibition of Benami
Property Transactions Rules, 2016 have been framed in this regard. As per the
Act, Benami property includes movable or immovable property, tangible or
intangible property, corporeal or incorporeal property. It empowers provisional
attachment and subsequent confiscation of benami properties. It also allows for
prosecution of the beneficial owner, the benamidar, the abettor and the inducer
to benami transactions, which may result in rigorous imprisonment up to 7 years
and fine up to 25% of fair market value of the property.
The Income-tax Directorates of
Investigation have identified more than 400 benami transactions up to
23 May, 2017. These include deposits in bank accounts, plots of land,
flat and jewellery. Provisional attachment of properties under the Act has been
done in more than 240 cases. The market value of properties under
attachment is more than Rs. 600 crore. Immovable properties have been
attached in 40 cases with total value of more than Rs. 530 crore
in Kolkata, Mumbai, Delhi, Gujarat, Rajasthan and Madhya Pradesh.
In one case in
Jabalpur, the benamidar, a driver, was found to be owner of land worth Rs 7.7
crore. The beneficial owner is a Madhya Pradesh based listed company, his
employer. In Mumbai a professional was found to be holding several immovable
properties in the name of shell companies which exist only on paper. In another
case in Sanganer, Rajasthan a jeweller was found to be beneficial owner of nine
immovable properties in the name of his former employee, a man of no means.
Certain properties purchased through shell companies have also been attached by
the Department in Kolkata.
The Government is keen to
implement the new Benami Act in an effective manner with visible outcomes on
the ground. For this purpose, 24 dedicated Benami Prohibition Units (BPUs)
have been set up all over India in the last week. These units are under the
overall supervision of the Principal Directors of Investigation in the
Income-tax Department to enable swift action and follow up, especially in cases
where criminality has been detected.
In addition, the Income-tax
Department, has undertaken searches on 10 senior government officials
during the past one month, keeping in view its policy to unearth black money
earned through corrupt practices and introduce accountability and probity in
public life. The crackdown on all forms of illicit wealth is being spearheaded
by the ITD to ensure that any economic misdeed is immediately identified and
actions as per law follows.
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DSM/VKS/KA