Alishan Complex Private Limited Vs Initiating Officer (Rajasthan High Court)
Alishan Complex Private Limited, a real estate company, challenged the Rajasthan Appellate Tribunal’s order dated 01.04.2026, which had affirmed the Adjudicating Authority’s order treating 79 immovable properties purchased by the company as benami properties. The proceedings originated from a search under Section 132 of the Income-tax Act on 16.06.2022 concerning the Maharani Group. The Initiating Officer subsequently issued proceedings under Section 24 of the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), alleging that Shri Mahaveer Lunia was the beneficial owner and the appellant company was the benamidar. The properties had been purchased during FY 2017-18 for Rs. 11,16,06,000 through banking channels. The appellant maintained that the purchases were funded from its existing capital, reserves and repayment or recycling of loans and advances.
The Initiating Officer relied upon search material, including property documents found at Shri Lunia’s residence, Income-tax records, company books, shareholding information and statements recorded under Section 132(4) of the Income-tax Act. The Adjudicating Authority confirmed the attachment and held the properties to be benami under Section 2(9)(A) of the PBPT Act. The Appellate Tribunal subsequently dismissed the appeal, holding that statements recorded under the Income-tax Act could be used in PBPT proceedings and that cross-examination was not an inbuilt right under the Act. The Tribunal also relied upon the alleged routing of approximately Rs. 40–42 crore through hawala/angadia channels and the alleged control of the companies by the Lunia family.
