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IT officials exploring Benami Transactions Act in DK Shivakumar's case?

  • IT officials had conducted a marathon raid for 74 hours on Energy minister DK Shivakumar and his acquaintances
  • The IT officials are reportedly exploring alleged 'Benami' transactions in Shivakumar's case
  • If proved, the minister could be booked under the Benami Transactions Act (Prohibition) implemented in November 2016
IT raid on DK Shivakumar benami transactions act

Energy minister DK Shivakumar, who is already facing heat from Income Tax officials, may face further trouble if the officials find 'benami' links to his properties. If that's proved, there are possibilities that Shivakumar may be booked under the Benami Transactions (Prohibition) Act, implemented by the Central government last year, which provides for seven years of rigorous imprisonment.

IT sleuths are gathering more details, exploring the option of registering the case under the act, reports Kannada Prabha. Interestingly, IT sleuths, who were investigating illegal assets and properties earlier, have slightly altered their style of execution, at least in the case of minister Shivakumar.

For this is the first time that IT officials are exploring not just Shivakumar's assets, but the sources and network of his income too, reports Kannada Prabha. It may be recalled here that IT sleuths had raided Shivakumar's father-in-law, his 'Guruji', his friend, MLC Ravi and others last week.

Interestingly, the IT officials had earlier raided minister Ramesh Jharkiholi, Congress' Women's wing president Lakshmi Hebbalkar and MLA MTB Nagaraj too - after the Benami Transactions (Prohibition) Act was implemented. But they reportedly did not explore the option of 'benami' properties in these cases. Moreover, IT officials led by BR Balakrishnan, IT Director General (Investigation) of Karnataka and Goa regions, had made a thorough research on Shivakumar and his properties to explore the alleged benami transactions.

And, if found true, there are all possibilities that he may be booked under the act.

IT officials are empowered to file the Benami Transactions (Prohibition) Act, and they are contemplating booking Shivakumar's case under the Act - besides referring it to Enforcement Directorate, reports Kannada Prabha.

What is the Benami Act

The Act is an amended version of the Prohibition of Benami Property  Transactions Act (PBPT), 1988. It was implemented by Modi government in November 2016. Violation of the act will attract seven years of rigorous imprisonment and a fine which may extend to 25 per cent of the fair market value of the benami property. Besides, it also empowers the government to confiscate deposits of people using benami accounts to convert unaccounted wealth into white money.

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