The income tax (I-T) department has provisionally attached the Alibaug farmhouse of actor Shah Rukh Khan under the new Benami Transactions (Prohibition) Amended Act, 2016, two senior tax officials familiar with the development said.
The income tax (I-T) department has provisionally attached the Alibaug farmhouse of actor Shah Rukh Khan under the new Benami Transactions (Prohibition) Amended Act, 2016, two senior tax officials familiar with the development said. According to the tax probe, while Khan through Deja Vu Farms had made an application for purchase of agricultural land for farming in Alibaug, he subsequently converted the land into a farmhouse for personal use. This the tax authority has claimed to be a “benami transaction” as per Section 2 (9) of the Act. The tax authority has alleged that Deja Vu Farms has acted as “benamidar” for Khan. According to the I-T department, Deja Vu Farms had taken unsecured loans of `8.4 crore from Khan for the purchase of land in Alibaug. Ministry of corporate affairs records show Khan’s wife Gauri Khan’s father Ramesh Chibba, her mother Savita Chibba and her sister Namita Chibba as the directors of Deja Vu Farms. Email, text message and phone call to the official spokesperson of Red Chillies Entertainment, the firm owned by Khan, did not elicit any response till the time of going to the press.
Under the Act, a benami transaction means any transaction in which property is transferred to one person for a consideration paid or provided by another person. The Act provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to seven years and a fine of up to 25% of the fair market value of the property.
The tax department has alleged that Deja Vu Farms has so far not shown any income from farming activity. Khan can challenge the tax order in the Income Tax Appellate Tribunal.
The case pertaining to Deja Vu Farms came under the tax scanner last year after Raigad collector Vijay Suryavanshi claimed a farmhouse allegedly owned by the actor was among 87 farmhouses on which the collector’s office had sought legal opinion for taking action for alleged Coastal Regulatory Zone violations. Subsequently, a complaint was also filed in a Mumbai police station alleging that Khan had
violated the Maharashtra Tenancy and Agricultural Lands Act that bars transfer of agricultural land to non-agriculturists without the permission of the collector or state government.