FINAL ORDER

12.08.2025

Dictated by: Rajesh Malhotra

Present appeal under Section 46 of the Prohibition of Benami Property Transaction Act, 1988, is filed by the Appellant against the Order dated 18.05.2018, passed by the Ld. Adjudicating Authority, in reference No. R-35/2017, under Section 26 (3), of the PBPT Act, 1988, whereby, the Provisional Attachment Order dated 21.04.2017 passed by the Initiating Officer (I.O.) under Section 24 (3) of PBPT Act, was confirmed.

The detail of the property of the Appellant is as under: -

2. As per the facts of the case, I.O. received information from Investigation Directorate of Mumbai that Mr. Bikramjeet Ram has used his bank accounts to deposit old notes of denomination of Rs 500/- and Rs. 1,000/- belonging to M/s Om Samriddhi Banquet & Hospitality LLP, Address: Banquet Hall No. 1, 5th Floor, Phirozshah Mehta Road, Santacruz West, Mumbai-54). The demonetized notes were deposited into bank accounts of his proprietorship concern, namely M/s Vikram Trading. The amount so deposited was later-on transferred to account of Cooperative Bank, Santacruz West, Mumbai - 400054 with account no. 002812100018645.

Mr. Bikramjeet Ram, during the course of his statement recorded by IO on 12-01-2017 under oath under section 131 of the Income Tax Act, 1961, has accepted that bank accounts of M/s Vikram Trading have been used to deposit cash.

Mr. Gurcharan Singh (partner of Om Samriddhi Banquet & Hospitality LLP), during the course of his statement recorded by IO on 07-12-2016 & 13-12-2016 and under oath under section 131 of the IT Act, 1961 has also accepted that bank accounts of M/s Vikram Trading have been used to deposit cash belonging to M/s Om Samriddhi Banquet & Hospitality LLP. Cash so deposited was later-on transferred into account of Om Samriddhi Banquet & Hospitality LLP in The Bharat Cooperative Bank Ltd, Mumbai. Total amount of such transfer was Rs. 85,18,100/-.

Accordingly, the Initiating Officer concluded that the transaction entered into by Mr. Bikramjeet Ram with Om Samriddhi Banquet & Hospitality LLP is a benami transaction u/s 2(9)(A) of PBPT Act, 1988 as the cash for such deposit has been provided by M/s Om Samriddhi Banquet & Hospitality LLP. This cash was held by Mr. Bikramjeet Ram and was later deposited into various bank accounts of his proprietorship concern namely M/s Vikram Trading on different dates for future benefit of M/s Om Samriddhi Banquet & Hospitality LLP, as money so deposited was ultimately transferred to beneficial owner M/s Om Samriddhi Banquet & Hospitality LLP. So, in view of the above, IO had reason to believe that Mr. Bikramjeet Ram is a benamidar and M/s Om Samriddhi Banquet & Hospitality LLP is a beneficiary. Accordingly, a show cause notice, dated 27-01-2017, u/s 24(1) of the PBPT Act, 1988 was issued by Initiating Officer to benamidar Mr. Bikramjeet Ram.

Accordingly, IO on the basis of material on record and reasons to believe that the said demonetized amount deposited by Mr. Bikramjeet Ram proprietor of M/s Vikram Trading was a benami property and thereby he passed the Provisional Attachment Order dated 21.04.2017. Thereafter, send the reference No. R-35/2017 before the Ld. Adjudicating Authority for confirmation of the same.

The Ld. Adjudicating Authority being satisfied with the allegations mentioned in the reference issued Show Cause Notice to the Defendants to file their reply. Defendant No.1 Sh. Bikramjeet Ram failed to appear and file his reply and was proceeded against ex-parte, whereas reply is filed on behalf of Defendant No. 2 (herein appellant company).

After going through the reply and documents and the respective submissions, the Ld. AA confirmed the PAO vide detailed order dated 18.05.2018.

Aggrieved by the said Order, appellant filed the present appeal.

3. During the arguments, Ld. Counsel for the Appellant pointed out the facts of the case, as mentioned in his list of dates & events as under:-

At the time of demonetization, the appellant discovered currency of