Income Tax department attaches Shah Rukh Khans Alibaug farmhouse under Benami Act

30 Jan 2018

Celebrities have always featured in the news when it comes to the Income Tax Department. Be it for notices filed or the amount of taxes paid in advance, Bollywood celebs have always featured in each of the list. Now we hear that the Income Tax department has provisionally attached Shah Rukh Khan s Alibaug farmhouse under the Prohibition of Benami Property Transactions Act (PBPT) in December. This attachment of Shah Rukh Khans property comes after allegations that Shah Rukh Khan had made an application to purchase agricultural land for farming. However, the actor instead constructed a farmhouse at Alibag for personal use. Due to this, the said property and transaction falls under the definition of benami transaction as per the Section 2 (9) of the PBPT Act, where Deja Vu Farms (Shah Rukh Khans Alibaug farmhouse) has acted as benamidar for the ultimate benefits of SRK. Thus, the actor is a beneficiary for the said under the prescribed law. Confirming the same, a senior Income Tax official added that the said matter comes under Section 24 of the Act wherein if the investigating officer believed that the person is benamidar, he can issue the attachment notice to that person or beneficial owner (if identity is known). If that wasnt enough, making matters worse is the fact that under the PBPT Act, which provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to seven years and fine up to 25 per cent of fair market value of the property. The law says that the attachment of the property can be done for a period not exceeding 90 days from the date of issuance of the notice, he explained. The circle rate of the attached property is Rs 146.7 million. However, the market price would go up to five-fold, said another I-T official. Considered a luxury property, the farmhouse is spread over an area of 19,960 sq metres. It has amenities such as a swimming pool, beach and private helipad.