Tribunal upholds seizure of ₹2.65 crore properties; undocumented family loan and future benefit claims rejected.
SAFEMA Rejects Family Loan Defence in Benami Case
The SAFEMA Tribunal has confirmed the attachment of immovable properties worth over ₹2.65 crore under the Benami Transactions (Prohibition) Act, 1988. The respondent claimed a family loan funded the purchases, but failed to produce any documentary evidence, loan agreements, or repayment records.
The Tribunal dismissed arguments based on anticipated future benefits, holding that mere expectation of inheritance cannot rebut benami presumption under Section 3(2) of the Act. The burden of proving lawful consideration lies with the alleged beneficial owner, which was not discharged.
The ruling reinforces the state’s power to attach assets under civil forfeiture frameworks. Lawyers must ensure clients maintain complete financial trails for all property acquisitions, particularly where funds originate from relatives. Oral arrangements will not suffice against enforcement agencies.
Citations
- Benami Transactions (Prohibition) Act, 1988, Section 3(2)
