Majority IT raids carried out against infra firms
The Benami Prohibition Unit (BPU), which comes under the income tax department in TS and AP has unearthed and attached 110 benami properties in 2017-18 and seized `1,100 crore in undisclosed income.
Sources said a most of the culprits were government employees, gangsters and some private real estate firms. The immovable properties were mainly in the form of agricultural lands, commercial shops and flats. The value of the illegal properties attached is not known; officials consider the original purchase price and not the market value of the buildings.
These 110 properties were discovered through individual complaints lodged at the Anti-Benami unit, and some were cases forwarded by other crime investigating agencies. Others were unearthed in raids by the IT wing.
Among those whose properties were attached under the Prohibition of Benami Act is former Naxalite and gangster Nayeem. More than 30 properties worth more than `10 crore were found to belong to him.
An official said, "The BPU have forwarded the 110 cases registered in Telangana state to the Adjudicating Authority, New Delhi. Once the process is completed, the IT wing is authorised to prosecute the benami and benamidar.”
He said the system allows the accused to appeal before the adjudicating authority. “During the entire process, the properties lie in the custody of the IT wing," he said.
In case orders issued by the Adjudicating Authority go against the accused, the IT wing is authorised to confiscate the buildings and this goes into the government's account.
The Prohibition of Benami Property Transactions Act came into force on November 1, 2016.
It provides for provisional attachment and confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficiary owner, the benamidar, and the abettor to the benami transactions, which may result in rigorous imprisonment of up to seven years and a fine of up to 25 per cent of the fair market value of the property.
The IT department had set up 24 BPUs under its Investigation Directorates all over India in May 2017 to ensure swift action in respect of benami properties. The practice of buying properties in the names of others is done in order to avoid paying tax.