Engaging in transactions to circumvent legal restrictions on SC/ST property purchases constitutes 'benami transactions' under the PBPT Act, attracting penalties for all involved.

Headnote:(A) Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) - Sections 2(9)(A) and 24(4) - Provisional attachment of agricultural lands and bank accounts confirmed - Evidence established that properties were purchased in names of directors to circumvent law restrictions on SC/ST land transactions - Transactions characterized as 'benami' as benefits ultimately accrued to the beneficial owner, contrary to statutory provisions. (Paras 11, 32, 46, 48)

(B) Legal Framework - Definition and requirements of the term 'benami transaction' under the PBPT Act highlighted, emphasizing that transactions structured to evade law are liable to penalties. (Paras 33, 46)

Facts of the case:
Multiple appeals were filed challenging the Adjudicating Authority's orders that confirmed the provisional attachment of lands and bank accounts, which were found to be linked to a developer allegedly engaging in illegally circumventing SC/ST property purchase laws. (Paras 1-12)

Findings of Court:
The court held that the properties were held 'benami' and could not escape the provisions of the PBPT Act, affirming the lower court's decisions on provisional attachments. (Paras 47-48)

Issues: The court examined whether the transactions fell within the definition of 'benami transaction' and whether exceptions apply given the fiduciary relationships argued by the appellants. (Paras 44-46)

Ratio Decidendi: The rationale emphasized that the ultimate beneficiary of the transactions was the beneficial owner operating through those appointed in fiduciary roles, consistent with the intent of the law. (Paras 40, 42)

Result: Appeals dismissed, confirming the Adjudicating Authority's orders.

ORDER

08.05.2025

Vide this common order, a total of 18 appeals arising out of the orders of the Ld. Adjudicating Authority (‗AA‘) under the Prohibition of Benami Property Transactions Act, 1988 (as amended by the Amendment Act of 2016) dated 18.02.2022 and 28.02.2022, confirming the provisional attachment of agricultural lands and money kept in bank accounts, respectively, under the said Act (hereafter referred to as ―PBPT Act‖) are proposed to be disposed of. Appeals listed at Sl. Nos. 1 to 6 are against the order of the Ld. Adjudicating Authority dated 18.02.2022 confirming the provisional attachment of immovable properties (lands), whereas appeals listed at Sl. Nos. 7 to 18 are against the order dated 28.02.2022 confirming the provisional attachment of moneys kept in the bank accounts of the appellants herein. The details of the properties whose provisional attachment was confirmed in the two orders are as follows:

Confirmed vide Order dated 18.02.2022 passed in Reference No. R- 0099 to R-0101, R-0103 to R-0106, R-0116 to R-0118/PBPT/DLI/2021:

Sr. No. Reference No.		Description of Benami Properties
1	R-0099/PBPT/DLI/2021	1/3rd part of agriculture land, Khasra No. 370, total land 1.2400 hect. (1/3rd part is 0.4133 hect.) situated at village Ghatajaldhari, Bhanpurkalan Tehsil Jamwaramgarh, Jaipur, purchased from Shri Ramshay S/o Shri Sewa in the name of Shri Hemraj Dhobi S/o Shri Kana vide sale deed no. 201801424000603 dated 16.02.2018
2	R-0100/PBPT/DLI/2021	1/3rd part of agriculture land, (Khasra No. 366, total land 0.2900 hect.) which comes as 0.967 Hect.) situated at village Ghatajaldhari, Bansa, Tehsil Jamwaramgarh, District Jaipur, – purchased from Shri Ganesh S/o Shri Kana Ram in the name of Shri Kana

		vide sale deed no. 201801424001959 dated 21.06.2018
3	R-0101/PBPT/DLI/2021	1/10th part of agriculture land, (Khasra No. 362 area 0.19 Hect., 368 area 2.32 Hect. And 375 area 0.4800 land 2.99 Hectare) i.e. Hect. – total 0.299 Hectare situated at Village Ghatajaldhari, Basna, Tehsil- Jamwaramgarh, Jaipur, purchased from Shri Lalchand S/o Shri Kalluramin the name of Shri Hemraj Dhobi S/o Shri Kana vide sale deed no. 201801424001958 dated 21.06.2018
4	R-01013/PBPT/DLI/2021	1/10th part of agriculture land at Khasra No. 196,200,207 (total land admeasuring 11 bigha, 17 biswa) which is having new khasra no. 362, 367, 368, 375 total land admeasuring 3 hectare situated at Village- Ghatajaldhari, Tehsil-Jamwaramgarh, District- Jaipur, purchased from Shri Mohammad Faeem, S/o Salimuddin in the name of Shri Banwari Lal Bairwa s/o Shri Chunni Lal Bairwa vide sale deed no. 201801424001124 dated 06.04.2018
5	R-0104/PBPT/DLI/2021	1/10th part of agriculture land at

		Khasra No. 196,200,207 (total land admeasuring 11 bigha, 17 biswa) which is having new khasra no. 362, 367, 368, 375 total land admeasuring 3 hectare situated at Village- Ghatajaldhari, Tehsil-Jamwaramgarh, District- Jaipur, purchased from Shri Mohammad Wasim, S/o Salimuddin in the name of Shri Banwari Lal Bairwa s/o Shri Chunni Lal Bairwa vide sale deed no. 201801424001122 dated 06.04.2018
6	R-0105/PBPT/DLI/2021	Agriculture land Khasra No. 361/1, 369/1, 372/1-in total 0.4700 Hectare situated at Village-Ghatajaldhari, Tehsil-Jamwaramgarh, District-Jaipur purchased from Shri Dalip S/o Shri Jaila and Smt. Maya W/o Shri Babu Lal in the name of Shri Manwari Lal Bairwa s/o Shri Chunni Lal Bairwa vide sale deed no. 201701424001175 dated 11.04.2017
7	R-0106/PBPT/DLI/2021	1/6th part of agriculture land (Khasra No. 202 rakba 4 beegha 18 biswa and khasra no. 208 rakba 2 beegha 12 biswa, ,total kita 2 total rakba 7 bigha 10 biswa which are having New Khasra No. 370 rakba 1.24 Hectare

		and new khasra no. 376 rakba 0.66 hectare) situated at village Ghatajaldhari, Basna, Tehsil Jamwaramgarh, Jaipur, purchased from Shri Samir Khan S/o Shri Sagiruddin (the power of attorney holder on behalf of Shri Nanagram Dholi S/o Shri Goopal Lal Dholi) in the name of Shri Banwari Lal Bairwa S/o Shri Chunni Lal Bairwa vide sale deed no

Click Here to Read the rest of this document