Bank Cannot Priority-Claim Benami Property When Unencumbered Borrower Assets are Sufficient for SARFAESI Recovery Issue Whether a secured creditor bank under the SARFAESI Act has priority to enforce its mortgage over a property attached as benami under the PBPT Act, when the benamidar had no legal right to mortgage the property and the bank holds… Read More »
Reviews applicants’ routing of demonetized cash through benamidars back to themselves constitutes a valid benami transaction Issue Whether the definition of a ‘benami transaction’ under Section 2(9)(A) of the Prohibition of Benami Property Transactions Act, 1988 requires concealment of the beneficial owner or future benefit to a third party, or whether providing consideration for property… Read More »
Provisional Attachment Order under PBPT Act Quashed due to Approval Preceding Section 24 Notice Issue Whether a Provisional Attachment Order and its subsequent confirmation under Section 24 of the Prohibition of Benami Property Transactions Act, 1988 are valid when the approval of the Approving Authority under Section 24(3) was obtained prior to issuing the foundational… Read More »
Allotment and buy-back of equity shares known to alleged benamidars does not constitute a benami transaction. Allotment and buy-back of equity shares known to alleged benamidars does not constitute a benami transaction. Issue Whether creation of trade payables, conversion into securities premium, and allotment/buy-back of shares known to job workers fall under Section 2(9)(C) of… Read More »
Provisional Attachment Upheld as Fund Transfer for Alleged Gold Sale During Demonetization Constituted Benami Transaction Provisional Attachment Upheld as Fund Transfer for Alleged Gold Sale During Demonetization Constituted Benami Transaction Issue Whether the receipt of ₹25 lakhs via RTGS from a benami entity’s bank account—allegedly towards the sale of gold without proper KYC, delivery proof,… Read More »
Acquisition of RIL shares through financially incapable RPPL constitutes a benami transaction, but freezing untainted shares is invalid. Acquisition of RIL shares through financially incapable RPPL constitutes a benami transaction, but freezing untainted shares is invalid. Issue Whether the acquisition of 10.43 lakh shares of RIL by RPPL using funds routed from promoter-linked entities constitutes… Read More »
Deferred Share Transfer Valuation Without Financial Capacity Constitutes Benami Transaction Subject to Provisional Attachment Issue Whether a share transfer executed on deferred consideration terms where the transferee lacks financial capacity, possesses no independent business, and holds shares under the seller’s lien constitutes a benami transaction under Section 2(9)(A) read with Section 24 of the Prohibition… Read More »
Provisionally attaching funds in appellant’s account is justified as unexplained RTGS credits constitute benami transactions Issue Whether the Initiating Officer was justified in treating Shri Asit B. Doshi as the benamidar and the appellant as the beneficial owner under Section 2(9) of the Prohibition of Benami Property Transactions Act, 1988, and provisionally attaching funds in… Read More »
Unexplained Demonetized Cash Deposits And Subsequent RTGS Transfers From Unknown Entities Constitute Benami Transactions Under PBPT Act Issue Whether unexplained deposits of demonetized currency and subsequent RTGS transfers into a proprietorship’s bank account from unknown entities, unsupported by independent trade evidence, constitute a ‘benami transaction’ under Section 2(9) read with Section 2(26), justifying provisional attachment… Read More »
Provisional and Confirmed Benami Attachment Valid Despite Prior PMLA Attachment Due to Non-Disclosure Provisional and Confirmed Benami Attachment Valid Despite Prior PMLA Attachment Due to Non-Disclosure Issue Whether an Initiating Officer can validly pass and continue a provisional attachment under Section 24 of the PBPT Act, 1988, leading to confirmation under Section 26(3), when the… Read More »