BENAMI PROPERTIES FROM BLACK MONEY IS ON RISE.

Spl Correspondent;- Prime Minister Narendra Modi from the beginning is against the Black money and took several steps to curb this menace as this Black Money in any form has the direct impact on our economy.

There are some examples of the Benami Properties and how the same is transferred from one holder to the another without any detection and action from the concerned departments of Government of India. To keep safe the black money the holder /holders form a Public or Private Limited Company and issue Shares in Benami names, Factious names in such Company and from time to time in future transfers these shares in his family members names and converts the Black money into white money but originally the Black money was invested. Shares issued/purchased on Benami names is the easiest way to convert Black money into white money without paying Income Tax and if Income Tax is paid the amount is very less and due to lack of proper check by the government Departments dealing with the subject is the reason that the holders of the Black money feel safe. In case some detections are made the concerned Departments like Income Tax, SEBI, Enforcement Directorate take long time to confiscate the properties of these natures and holder settle the matter from the influence of high-up in Government.

There are some Hotels in Assam’s big cities like Tezpur, Tinsukia, Jorhat Kamrup and Dibrugarh a huge Black money is invested by politicians, Bureaucrats and big business houses. The Politicians and Bureaucrats uses their friends and businessmen for this act. There are some proofs of about two or three hotels of these types which have more than 80 crores of Black money invested in only two hotels. The Market Value of these two hotels are around 140 crores that means more than 40% amount is Black money. In one of the hotels a Govt. Officer has an investment of more than 40 crores of his black money. This IAS officer have a huge investment in the cities like Gurugram, /New Delhi and Dwarika amounting to more than 200 crores of properties there which is more than the income of his known source of income. How a Government Officer can have such a huge properties in the names of his family members. The investment made in these types of Private or Public Limited companies are safe and earns profit from rent of these properties. In one hotel a businessman invested 60% of the investment from his Black Money in the factious names in the beginning of the hotel and after that transferred these shares in his family members names by the Promoters which amounts to around 15 crores as on today.

The sale and transfer of the shares of these companies are also made by then management of these companies ignoring the value of share as per FAIR MARKET VALUE which is mandatory as per income Tax Rules. This is totally ignored and sale and transfer of the shares are done on very less amount or on face value of the shares where as the Fair Market Value will about 10 to 12 times of the face of the shares. Not only that all the transactions are made in CASH.

The matter was brought to the notice of the Department like Income Tax, Enforcement Directorate in last two years but no any action being taken. Definitely the concerned Officer and the involved Businessman has a political backing and as such no actions are taken.

Prime Minister Narendra Modiji will have to be strict and must keep watch on the corrupt politician and Central as well as state government also so that politicians and Bureaucrats cannot accumulate such a huge Black money earned from corrupt methods and from siphon of tax payers money from the government exchequers. If no actions are taken the Black money will increase in the country and economy will be in bad shape.