The SAFEMA Appellate Tribunal ruled that assets belonging to an alleged abettor cannot be attached under the PBPT Act unless proven to be benami properties independently. The tribunal emphasized that the Act allows for attachment only of benami properties held by a benamidar.
Key Ruling on PBPT Act and Abettors
The SAFEMA Appellate Tribunal recently held that properties associated with alleged abettors cannot be attached under the Prohibition of Benami Property Transactions Act (PBPT Act) in the absence of an independent finding that these properties are benami. The tribunal clarified that attachment is permissible only for properties that meet the definition of benami holdings under the Act.
The ruling highlights that the PBPT Act specifically permits the attachment of properties found to be held under benami arrangements. This includes situations where assets are held by a benamidar for the benefit of the real owner. In this case, without establishing that the abettor's properties are indeed benami, the tribunal concluded that such attachments are unjustified.
Practitioners should take note of this critical distinction and ensure that appropriate benami findings are made before proceeding with attachment actions under the PBPT Act. The decision underscores the necessity for clear evidence in establishing the nature of property ownership in cases involving alleged abetment.
Citations
- SAFEMA Appellate Tribunal (2026) [unreported]
