AGNG Solution Pvt. Ltd. Vs Initiating Officer (Appellate Tribunal Under SAFEMA Delhi)
DRT Auction Purchase Still Benami: Unknown Source of Loan & Lack of Creditworthiness Sustain Attachment
The Appellate Tribunal under SAFEMA, New Delhi in a batch of appeals led by Smt. Nishika Gehlot & Shri Gunda Akhil Kumar vs. Initiating Officer, BPU, Hyderabad (FPA-PBPT-2851, 3124, 3233-41/HYD/2023, final order dated 10-12-2025) dismissed all appeals and upheld the provisional attachment, holding that purchase of property through DRT auction does not immunise a transaction from benami law when the source of consideration remains unexplained and creditworthiness of lender is absent.
The case related to 303.64 acres of agricultural land purchased in a public auction conducted by DRT on 24-01-2020 for a total consideration of about ₹6.55 crore, in the names of multiple companies and individuals. The Appellants claimed that the entire consideration was paid through banking channels out of loans obtained from M/s Star Capita, a money-lending firm.
The Initiating Officer invoked section 2(9)(D) of the Prohibition of Benami Property Transactions Act, 1988, alleging that the real source of funds was unknown / fictitious, and that neither the purchasers nor the alleged lender had the financial capacity to support transactions of such magnitude. On reference, the Adjudicating Authority confirmed the provisional attachment.
The Tribunal noted that:
