New Delhi (16.12.2020): The Income Tax Department on Wednesday disclosed the fact behind the 'be-nami' land purchase carried out by MD of a Chandigarh-based listed pharmaceutical company, during a search operation carried out on December 13.

During the search, the Central Board of Direct Taxes (CBDT) said that investigations regarding the holding of Benami shares worth Rs 140 crore were in progress, while cash amounting to Rs 4.29 crore and jewelry amounting to Rs 2.21 crore have been seized. The search covered 11 premises in Chandigarh, Delhi, and Mumbai. Apart from this ample evidence has been found and seized which clearly establishes that the Benami company is a conduit of the pharmaceutical company with no real business activity. 

The primary allegation against the group was that the assessee company had purchased 117 acres of Benami land in Indore, in the name of a conduit company.

In addition to Further investigations regarding the holding of Benami shares worth Rs. 140 crore by the HUF of the Managing and bogus purchases of substantial amounts are in progress,” the Board added.

All the dummy directors and shareholders of the Benami company have also admitted in their respective statements that the company was a shell company with no real business activity and the land in Indore had been bought from the funds of the listed company for the benefit of the managing director, the Board said further.

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