GOVT MAY HAVE BENAMI EGG ALL OVER ITS FACE
Benami attachments worth crores may fall flat as there is no adjudicating authority for 1.5 years PMLA Authority doubling up as benami authority but unable to handle its workload
If cases are invalidated, it would be reprieve for high-profile individuals, politicians and bureaucrats
One the one hand, the government is announcing handsome reward schemes for information on benami assets but, on the other hand, benami asset attachments worth crores run the risk of being invalidated as the government has failed to create a designated adjudicating authority.
It almost a year-and-a-half since the stringent legislation on ‘benami’ assets was revived and enforced by the current government to deal with corruption and black money. This was in November 2016, the month that also saw demonetisation.
Section 7 of the ‘Benami Transaction’ law, which attracts a rigorous imprisonment of up to seven years and a 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). This authority, in turn, will decide on the validity of the attachments made under this legislation by the Income Tax Department.
In the absence of such an authority for over 1.5 years now, 780 cases of attachments worth crores of rupees and involving some very high-profile individuals, politicians, bureaucrats and others could be in jeopardy.
These high-value sensitive cases may get "time-barred" or even invalidated as benami attachment orders have to be confirmed within a year of issue by the IT Department.
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 Prevention of Money Laundering Act (PMLA).
Official records show that while over 860 such cases have been finalised by the tax department and sent to this authority, until now, only about 80 could be adjudicated, leaving a pendency of about 780 cases.
The authority, as per official records, has put the government on notice stating if a new body is not created, "it will be impossible for it to dispose of benami cases in the prescribed time limit.
The crackdown on benami assets has been the mosttalked about action of the government under its flagship anti-black money drive, about which PM Modi has himself spoken at various forums and poll rallies, a senior Finance Ministry official told the news agency.
Records show that the existing Authority has been forced to work without a regular Chairman since April 1 as the incumbent retired a day before and has only two working members now.
It has also beseeched the Finance Ministry to provide it at least 9 junior staff members like court masters-- to take down dictations and write judicial orders, reports PTI.