The case concerns benami transactions and the attachment of ...

Appellate Tribunal Confirms Property Attachment, Citing Benami Transactions and Questionable Fund Sources.

June 25, 2024

Case Laws     Benami Property     AT

The case concerns benami transactions and the attachment of properties. The Adjudicating Authority initially refused to confirm the attachment order, citing funds received as loans or advances through proper banking channels. The Appellate Tribunal found this reasoning flawed, noting the ignorance of the benami nature of the transactions. It highlighted the suspicious nature of fund sources, premium share issuances, and the involvement of non-existing or paper entities. The Tribunal deemed subsequent transactions as benami, despite the non-response of 79 entities to notices. The Tribunal criticized the Authority for basing its decision on conjecture and surmise, disregarding crucial facts. Affidavits filed by a common individual for multiple entities were also scrutinized. The Tribunal upheld the Department's arguments, setting aside the Authority's order and confirming the provisional attachment.

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