Hyderabad Authorities Crack Down on Benami Property in Jubilee Hills Worth ₹150 Crore
Benami Prohibition Unit (BPU) in Hyderabad has issued a provisional attachment order for a prime property valued at approximately ₹150 crore in the upscale Jubilee Hills area.
In a significant move against illegal property transactions, the Benami Prohibition Unit (BPU) in Hyderabad has issued a provisional attachment order for a prime property valued at approximately ₹150 crore in the upscale Jubilee Hills area. This crackdown is part of ongoing efforts by authorities to combat benami transactions and illicit financial practices in the real estate sector.
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Benami Ownership Unraveled
The property, spanning 4,000 square yards in survey Nos. 105 and 106 of Jubilee Hills, Shaikpet mandal, was initially registered in the name of Mahadev Rathi, who was identified as the benamidar (a proxy owner). However, further investigation by the BPU revealed that the actual owner of the property was Shiv Shankar Taparia, a businessman with links to the paper industry.
The land was originally purchased in 2017 through two sale deeds worth ₹4 crore each, totaling ₹8 crore. At that time, the ownership was recorded under Rathi’s name. But after conducting an in-depth inquiry, authorities discovered a significant discrepancy. Despite his ownership, Rathi, who hails from Odisha and works in a textile firm, could not justify the high value of the property. This led the BPU to trace the true owner to Taparia.
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Legal Action and Restrictions Imposed
The provisional attachment order, issued under Section 24(3) of the Prohibition of Benami Property Transactions Act (PBPT Act), 1988, restricts the sale or transfer of the property for the next four months. Authorities have also alerted the Telangana stamps and registration department to block any attempts to change ownership. A letter has been sent to the Golconda sub-registrar’s office, officially identifying the property as benami and placing it under restriction until the adjudication process is completed.
A public notice regarding the attachment was issued on January 7, 2025, warning that any attempt to sell, transfer, or encumber the property will be considered illegal unless authorized by the authorities.
Business Links of the Alleged Beneficiary
According to the Ministry of Corporate Affairs, Shiv Shankar Taparia is listed as the director of two paper mill companies: Tirupati Kagads Private Limited and Harishankar Paper Products Private Limited. Authorities are now investigating whether funds from these companies were used to acquire the property under a benami arrangement. The probe aims to establish whether Taparia used Rathi as a front to acquire the land in question.
Crackdown on Benami Properties Intensifies
This move is part of a broader, intensified effort by tax authorities to address benami property transactions, particularly in Hyderabad’s high-value real estate markets like Jubilee Hills. As property prices in these prime locations continue to rise, authorities are closely scrutinizing transactions for financial irregularities and suspicious activity.
Officials have indicated that further legal action is likely as the investigation into the financial dealings of both Rathi and Taparia progresses. If the benami nature of the property is confirmed, the government may eventually seize it.
This case serves as a strong reminder that authorities are tightening their grip on illicit practices in the real estate sector, and more such investigations are expected to follow in the coming months as they continue to target hidden assets and benami transactions.
