Prabhakar Satpathy Vs Initiating Officer (Appellate Tribunal Under SAFEMA Delhi)
The Appellate Tribunal under SAFEMA, New Delhi, considered appeals filed under Section 46 of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), challenging a common order dated 19.01.2024 passed by the Adjudicating Authority. The Adjudicating Authority had held that the immovable property measuring Ac. 2.000 decimals at Mouza Goudakashipur was a benami property, with Shri Prabhakar Satpathy as the benamidar and his nephews, Shri Prasanta Kumar Dash and Shri Shishir Kumar Sahoo, as the beneficial owners.
The proceedings were initiated based on information from the Income Tax authorities indicating that the property had been purchased for substantial consideration, while Shri Satpathy lacked sufficient financial capacity. Enquiries revealed that the sale consideration and related expenses were funded through banking channels by the nephews. Shri Satpathy admitted that the funds used for purchasing the land, payment of stamp duty, registration charges, and development expenses were provided by them.
Evidence showed that the nephews were involved from the inception of the transaction. An agreement dated 31.12.2008 recorded that the property would be registered in the names of Shri Satpathy and his nephews, with major investment to be made by the nephews. Subsequent agreements and bank records established that the eventual registration of the property in 2018 in the name of Shri Satpathy was entirely funded by the nephews. Shri Satpathy’s financial position, including retirement benefits and declared income, was found insufficient to support the claimed advances, development expenses, or the final purchase consideration.
