Fight towards Benami residences can also affect homebuyers, banks

As the income-tax (I-T) branch digs deeper to dredge out so-referred to as became properties—ones held through proxies of the actual proprietors—it’s far going through the unsightly prospect of attaching real property tasks under implementation, affecting builders, clients, and even banks.

According to four officers in the tax department, some houses underneath the branch’s scanner for which provisional attachment notices were issued can be improved. These officials, who asked not to be identified, said they’ve begun the bodily verification of homes they’ve diagnosed as Benami.

Attachment of homes below improvement may be an “unmitigated catastrophe” for leaders and the embattled real estate region, stated a pinnacle banker who requested not to be named. “It will trigger a series of defaults and purpose loads of inconvenience to homebuyers,” he introduced.

The department understands the results for not unusual humans, stated one of the I-T officers referred to above. There turned into plenty of deliberation internally. However, the department concluded that there had been no way out. Sadly for lenders and homebuyers, it’s almost impossible to pick out lost new belongings from the recurring report.


The branch, which has formed separate teams across India to research new properties, has issued provisional attachment notices for over four hundred residences and connected homes worth Rs600 crore across 240 deals, consistent with a 24 May assertion from the Central Board of Direct Taxes. Most 400 houses are land and homes, even though financial institution deposits and jewelry are also blanketed.

In Kolkata, a key land aggregator is underneath the branch’s scanner. Several properties owned using it within the town and its suburbs have already been attached, in line with the I-T officers. It isn’t without delay recognized whether its below-creation residential complex in north Kolkata had been connected. Still, tax department officers said the organization had been diagnosed as “a proxy for unknown beneficiaries,” and any belongings owned by its miles were likely to be connected.

Mint withholds the call at the officials’ request, who worry that naming the institution and its pursuits could disrupt the continuing investigation. The man at the back of the institution in Kolkata said the allegations had been “completely baseless” and that he might legally mission them at the correct time. “There was no concealment, and I have proven those properties in my books for at least ten years,” this person claimed. “If they are thinking the source of the price range, it is also quite without a doubt mentioned in my books.”

This instance is important as it highlights the larger issues in the taxman’s fight against Benami properties. Among the Kolkata-based organization homes, which has been attached, is a huge 17-acre plot inside the metropolis’s suburbs, where the organization is looking to expand a 3.1 million so. Ft industrial-cum-residential complex, in line with files reviewed using Mint. It isn’t clear if the group has started to take bookings for this undertaking.


However, a leading real estate developer in West Bengal has already started to construct the residential complex in north Kolkata on every other 3-acre plot owned by this organization, below the development and advertising agreement.

“The mission became offered out inside hours,” stated the leader executive officer of the developer, clarifying that his business enterprise didn’t have any possession inside the land. Construction has begun, and a “fair amount of money” has already been invested in the venture he brought. Asked how he could cope with the potential attachment of the branch’s belongings, the developer said the authorities should connect the “proceeds from the sale” and no longer the assets themselves. “If the belongings are attached, construction will have to be halted, which, to my mind, is beyond purpose,” this developer said.

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