Untraceable Owners: Inside the Anti-Benami Clampdown

The Income Tax department's attachment of assets under the anti-benami law is upheld even without identifying the actual owner, as per a recent ruling. The case involves Lucknow realty groups using unaccounted cash for land acquisitions, leading to provisional attachments valued over Rs 3.47 crore.

The Income Tax department can attach assets under the anti-benami law even without identifying the actual owner, as a quasi-judicial body has confirmed. This provision targets untraceable or fictitious entities.

In a ruling dated November 26, 2024, the Adjudicating Authority under the Prohibition of Benami Property Transactions Act, 1988, upheld an attachment order by the Lucknow Income Tax unit. This followed discoveries of unaccounted cash used by Lucknow realty groups to purchase land parcels in Kakori.

The Benami Prohibition Unit provisionally attached land valued over Rs 3.47 crore. Although the order didn't mention any beneficial owner, the Authority confirmed the attachment of properties worth Rs 3.10 crore and identified Ravi Kumar as the 'benamidar'. The Authority also called for further investigations into additional assets.

(With inputs from agencies.)