The SAFEMA Appellate Tribunal has ruled that routing demonetized cash through a third-party account constitutes a benami transaction under the PBPT Act, expanding the definition of 'property' in such cases.
SAFEMA Tribunal Confirms Routing Demonetized Cash as Benami Transaction
In a pivotal ruling, the SAFEMA Appellate Tribunal has determined that routing demonetized cash through another person's bank account and transferring it back constitutes a benami transaction under the Prohibition of Benami Property Transactions (PBPT) Act. This decision significantly expands the understanding of what qualifies as 'property' for benami proceedings.
The Tribunal clarified that cash is considered 'property' and can serve as the basis for initiating benami proceedings when entangled in transactions aimed at disguising the original ownership. The ruling emphasizes the importance of scrutinizing transactions that involve the movement of cash, especially in contexts of demonetization.
Legal professionals dealing with financial crime and tax evasion should closely monitor this ruling as it sets a precedent for how cash transactions, particularly those involving demonetized currency, may be approached under the PBPT Act.
Citations
- SAFEMA Ruling (2026)
