SAFEMA Tribunal upholds seizure of ₹2.65 crore assets, rejecting unproven family loan claims in benami proceedings.
SAFEMA Tribunal Upholds Benami Attachment Without Loan Proof
The Securities Appellate Tribunal for the Foreign Exchange Management Act (SAFEMA) has affirmed the attachment of properties valued at ₹2.65 crore under the Benami Transactions (Prohibition) Act, 1988. The claimant’s assertion of a loan from family members was rejected due to absence of documentation, bank trails, or corroboration.
The Tribunal held that bald assertions without evidence cannot rebut the presumption of benami transactions under Section 3 of the Act. The burden under Section 5 lies on the claimant, which was not discharged. Objections based on future benefits were also dismissed as legally untenable.
The decision reinforces strict scrutiny in benami adjudication. Legal practitioners must ensure clients maintain documentary trails for all financial transactions, especially intra-family transfers.
Citations
- Benami Transactions (Prohibition) Act, 1988, Sections 3, 5
