SAFEMA Tribunal upheld benami attachment of properties worth ₹2.65 crore, rejecting an undocumented family loan as insufficient to rebut the presumption under PMLA.
Undocumented Family Loan Fails to Rebut Benami Presumption
The SAFEMA Tribunal has upheld the attachment of properties valued at over ₹2.65 crore under the Prevention of Money Laundering Act (PMLA), rejecting the respondent’s claim of a family loan as the source of funds. The Tribunal found no documentary evidence—such as loan agreements, bank trails, or repayment records—to substantiate the alleged loan.
The respondent argued that the funds used for property acquisition originated from an oral loan from relatives. However, the Tribunal held that uncorroborated oral assertions cannot overcome the statutory presumption under Section 24 of the PMLA, particularly when financial transactions of significant value are involved.
"The burden lies on the claimed owner to demonstrate legitimate source; absence of any paper trail renders the claim speculative."
This ruling reinforces the evidentiary rigor required in PMLA proceedings. Practitioners must ensure clients maintain complete documentation for all financial transactions, especially those involving third-party funding. The decision may influence future defenses based on familial financial arrangements lacking formal records.
