Case Law Details
The Adjudicating Authority Vs M/s. Anuttam Academic Institutions (Madras High Court)
Facts- During the year 2017, a search was conducted in the premises of Marg Group of companies and its related entities, which resulted in seizure of various documents allegedly indicating the prohibited transactions as per clause A of section 2(9) of the Act. Therefore, a notice dated 26.04.2018 u/s 24(1) of the Act was issued by the second appellant to the respondent herein, calling upon them to show cause as to why they should not be treated as benamidar of the parent company called M/s.Marg Limited, who is the beneficial owner of the land measuring about 17.702 acres at Muttam Village, Nagore Vattam, having been purchased in the years 2009 and 2010 by availing loan from M/s.Great Meera Finlease Private Limited, a Non-banking financial company incorporated solely for the purpose of routing the funds of Marg group of companies and such fund was also flown from the another shell company viz.,
M/s.Arohi Infrastructure Pvt.Ltd., which is incorporated as a subsidiary of M/s.Marg Limited.
An order dated 20.07.2018 was passed provisionally attaching the property of the respondent company u/s 24(4)(b)(i) of the Act.
Upon receiving the reference u/s 24(5) of the Act from the second appellant, the first appellant issued a notice dated 14.08.2018 under Section 26 (1) of the Act. The first appellant, after affording sufficient opportunities to the respondent and considering the material evidence placed, passed an order dated 26.08.2019 in terms of Section 26 (3) of the Act, confirming the provisional order of attachment passed by the second appellant inter alia holding that the subject matter of the property is a benami property and the transaction is a benami transaction, in which the respondent is the benamidar of the beneficial owner M/s. Marg Limited.
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