IT Raids on Real Estate Companies, Seizure of Benami Property Without Tracing Real Owner
Typically, confiscation orders issued by the Income Tax Department identify the benami owner. However, the authority has stated that it is provisionally upholding the confiscation order issued by the Income Tax Department.
New Delhi: Under the Anti-Black Money Law, the Income Tax Department has the authority to seize assets even if the true owner of the property cannot be identified. This power is provided under the Prohibition of Benami Property Transactions (PBPT) Act of 1988. Recently, the authority upheld a land confiscation order issued by the Income Tax Department in Lucknow on November 26, 2024.
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The Income Tax Department conducted raids on three real estate firms in Lucknow, which had purchased large plots in Kakori (district of Lucknow) using substantial unaccounted cash. In October 2023, the Anti-Benami Unit in Lucknow issued an interim order to confiscate five plots valued at ₹3.47 crore in Kakori. This order was sent to the authority for validation.
Typically, confiscation orders issued by the Income Tax Department identify the benami owner. However, the authority has stated that it is provisionally upholding the confiscation order issued by the Income Tax Department.
