Sadanand Kadam Vs Initiating Officer (Appellate Tribunal Under SAFEMA Delhi)
Loan with Minister as Guarantor Exposes Benami Deal -CRZ-Violated Property Turns Costly for Duo – ED’s Benami Action Upheld
The appeals were filed by Sadanand Kadam (benamidar) & Anil Dattatreya Parab (beneficial owner) against the Adjudicating Authority’s order dated 13.11.2023 confirming Provisional Attachment Order on a resort property at Murud, Dapoli (Survey No. 446), under the Prohibition of Benami Property Transactions Act, 1988.
The property was initially purchased by Anil Parab in May 2017 for ₹1 crore, though the sale deed was executed in June 2019. Construction of a resort commenced soon thereafter, costing ₹4.13 crore. In December 2020—after media reports alleging CRZ violations & after Parab became a minister—the land was transferred to Kadam for ₹1.1 crore. The ED alleged that construction expenses were borne by Parab, making it a benami arrangement under Section 2(9)(A).
Appellants argued that Kadam intended to buy the land originally but lacked funds in 2017, hence Parab paid temporarily on his behalf; later, Kadam reimbursed the amount through a loan. They claimed construction was funded by Kadam from his own business income & supported by a diary seized during search. They also contended that approval for provisional attachment was taken a day before the notice u/s 24(1), rendering the action invalid.
