I-T dept attaches benami properties worth ₹3,500 cr

NEW DELHI: The Income Tax (I-T) department on Thursday said it has attached more than 900 benami properties, including flats, shops, jewellery and vehicles worth over ₹3,500 crore.

It said in a statement that it has stepped up action under the Prohibition of Benami Property Transactions Act, which came into force from November 1, 2016.

The Act provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable.

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

The department had set up 24 dedicated benami prohibition units under its Investigation Directorates all over India in May, 2017 to ensure swift action in respect of benami properties.

“Due to intensive efforts undertaken by the department, provisional attachment has been made in more than 900 cases of properties under the Act. These include plots of land, flats, shops, jewellery, vehicles, deposits in bank accounts, fixed deposits etc,” the statement said.

The value of properties under attachment is more than ₹3,500 crore, including immovable properties of more than ₹2,900 crore, the department said.

Benami literally means ‘without a name’. An asset without a legal owner or a fictitious owner is called benami.

The original Benami Act was introduced in 1988 for prevention of black money and was amended in 2016 to prohibit benami transactions and provides for confiscating benami properties. I-T said in five cases, the provisional attachments of benami properties, amounting to more than ₹150 crore have been confirmed by the Adjudicating Authority.