Special Court Restores Benami Property Case Against NCP Minister Bhujbal

Mumbai: A special court has ordered the restoration of a 2021 benami property case initiated by the Income Tax (I-T) department against NCP minister Chhagan Bhujbal, his family members, and their firms. The special MP/MLA court has scheduled the next hearing for October 6. The case was initially quashed by the Bombay High Court on technical grounds, not on the merits of the case.

In 2021, the I-T department initiated proceedings against Bhujbal, his family members, and their firms—Armstrong Infrastructure Pvt Ltd, Parvesh Constructions Pvt Ltd, and Devisha Constructions Pvt Ltd. The department alleged that these individuals and entities were involved in benami transactions during the financial years 2008-09 and 2010-11. The special court had initially issued summonses to the accused in November 2021.

The accused, including NCP minister Chhagan Bhujbal, his son Pankaj, and nephew Sameer, had challenged the I-T action at the Bombay High Court. The High Court quashed the case, citing a precedent set by a Supreme Court order. It was alleged that the benami assets were held by the three companies linked to them, including properties in Mumbai and the Girna Sugar Mills in Nashik.

Special Judge Satyanarayan Navander stated that the High Court had granted liberty to the prosecution to revive the proceeding if their review petition was allowed by the Supreme Court. This indicates that the proceeding was quashed only on the basis of the Supreme Court precedent and not on the merits of the case, the special court noted.

The restoration of the case highlights the ongoing scrutiny of benami transactions in India. Benami transactions, where property is held by one person on behalf of another for the purpose of concealing the identity of the real owner, are illegal under the Benami Transactions (Prohibition) Act, 1988. The I-T department has been proactive in investigating and prosecuting such cases to curb money laundering and tax evasion.

The case against Bhujbal and his family members is a significant development in the fight against corruption and financial irregularities. It underscores the commitment of the judiciary and law enforcement agencies to ensure transparency and accountability in financial dealings.

As the case progresses, it will be closely watched by legal and political observers. The outcome could have broader implications for similar benami property cases and the enforcement of anti-corruption laws in India.