Going hard on benami transactions, Income tax department officials have launched an operation to identify and investigate such cases. In the first phase, the department seems to have zeroed down on over 400 transactions worth ₹600 crores. These transactions include bank deposits, agricultural land, flats and jewellery.
Taking a new initiative, Income Tax department had assigned 24 BPUs (benami prohibition units) across the country to identify and investigate such benami transactions. These units will directly report to principal director of investigation, which will ensure a swift action in case they identify suspicious transactions.
According to an official statement on Wednesday, the department has identified these transactions in Gujarat, Rajasthan, Madhya Pradesh, Delhi, Mumbai and Kolkata. It also stated that in over 240 cases, the department has provisionally attached properties, out of which, 40 cases include immovable assets valuing over ₹530 crores.
Most of these transactions are carried out on the names of shell companies or people who are closely related to the accused. In a few cases, even drivers and cook were found to be owners of properties worth crores. Shell companies are formed to move money in an illegal way and they exist only on papers.
According to the statement, one driver in Madhya Pradesh had a property worth ₹7.7 crores on his name. Upon investigating, it was found that the employer had a number of shell companies to illegally hold funds. I-T has also attached properties which were bought on the names of shell companies.
The Benami Transactions (Prohibition) Amendment Act, which came into effect from November 2016 works to identify such transactions where the benefits are given to a person or company other than the actual owner. The act advocates for a strict punishment to the guilty, which includes a jail term of upto 7 years and penalty worth upto 25% of the total worth of assets in question.