Benami attachments set to become invalidated

Worried that high- value sensitive cases may get “time- barred” or invalidated as benami attachment orders have to be confirmed within an year of issue, the authority has asked the finance ministry to “hold” them with the I- T department.

New Delhi, June 3: Over 780 benami asset attachments worth crores of rupees run the risk of being invalidated in the near future as the government has failed to create a designated adjudicating authority for over a yearanda- half since the stringent law was enforced to deal with blackmoney and corruption.

The Benami Property Transaction Act, enacted in 1988, was revived and enforced by the current government from November 1, 2016, the month that also saw demonetisation of two big currencies of the country by a declaration made by Prime Minister Narendra Modi.

Section 7 of this law, that attracts a rigorous imprisonment of up to seven years and fine up to 25 per cent of the fair market value of the property, requires the government to create an independent 3- member Adjudicating Authority ( like the one for PMLA) that will decide on the validity of the attachment of properties made under this legislation by the I- T Department.

In the absence of such an authority for over 1.5 years now, the government has entrusted the task of handling these cases on an ad- hoc basis and as a “transitional” arrangement to the already short- staffed and over-burdened Adjudicating Authority for the PMLA, a stringent law enforced by the ED.

Official records accessed by PTI show that while over 860 such cases have been finalised by the tax department and sent to this authority till now, only about 80 could be adjudicated, leaving a pendency of about 780 cases bearing attachments worth crores of rupees and involving some very high- profile individuals, politicians, bureaucrats and others.