Directions: Read the passage carefully and answer the questions that follow.
In the tiger state of Madhya Pradesh, the menace of Benami transactions has extended to the territory of the big cat.
At least three Benami transactions have been detected by the Benami Prohibition Unit (BPU) of the Income Tax Department in the Pench Tiger Reserve, famously known as the ‘Land of Jungle Book’s Mowgli.’
Two of the transactions involve land housing two prominent resorts, while the third relates to a piece of land on which a resort was planned to be built.
Importantly, in accordance with Section 165 of the Code of Land Revenue in Scheduled Tribe areas of Madhya Pradesh, there is a complete ban on selling tribal land to non-tribals in notified scheduled areas. Even district collectors do not have the authority to allow such transactions. However, tribals can lease land to non-tribals in notified scheduled areas and non-notified rural areas without the district collector’s permission.
As a result, the beneficial owners in all three cases of Benami transactions ultimately leading to the attachment of the three properties by the IT Department purchased land owned by tribals through tribal proxies. These proxies then leased the land back to the beneficial owners to build resorts on at least two of the properties. The third land was also intended for the construction of a resort, but the IT Department’s BPU detected the Benami transaction in time.
Consequently, all three Benami properties, including the two resorts, were attached by the IT Department under the provisions of the Benami Transactions (Prohibition) Amendment Act 2016.
“The three Benami properties that were detected and attached in 2021-22, with a collective value of around Rs 4 crore, cover a combined area of about ten hectares,” informed sources told this newspaper.
Investigations revealed that the three beneficial owners—none of whom were tribals used tribals as proxies (Benamidars) to purchase the land from the original tribal owners in tribal areas, circumventing the ban on selling land to non-tribals in the notified scheduled areas of the state.
Under the Benami Transactions (Prohibition) Amendment Act 2016, a Benamidar is a person who holds property in their name for the benefit of another person, while the person who actually pays for the property is the Beneficial Owner.
These three Benami property attachments within tiger territory (located within a radius of one to four km from the Turia Gate of the Pench Tiger Reserve) may be the first of their kind in any tiger reserve in the country, but more could follow in the future.
According to informed sources, after the three attachments made in 2021-22, several other resorts are now on the IT Department’s radar due to suspicions that they were developed on land obtained through Benami transactions, particularly as most of the eight tiger reserves and wildlife sanctuaries are located in tribal-dominated areas of the state, which houses the largest tribal population in the country.
Interestingly, it was a tax evasion petition (TEP) that led to the first attachment. During the investigation, the IT Department's BPU stumbled upon two more similar properties, resulting in their attachment as well.
In terms of the total number of Benami properties attached across the country under the amended Benami law of 2016, Madhya Pradesh’s BPU has attached the most, with over 1,400 Benami properties. The total value of these attached properties is estimated between Rs 900 crore and Rs 950 crore.
Out of the 1,400 attached properties, ten were seized in 2024-25, including shares worth approximately Rs 350 crore held by promoters of a listed company in the names of their employees.
Another major attachment included 150 khasras (land holdings in revenue records) held by the owners of a stone crushing plant in the name of their henchmen in Sidhi district, eastern MP, which borders Uttar Pradesh and Chhattisgarh.
In a recent development, two Benami properties (land) held by a prominent and influential builder, whose premises were recently raided in Bhopal by the IT Department, were also attached.
[Excerpt from TOI "Benami Transactions in Madhya Pradesh" Dated 20/01/25]
Q1: What is the main purpose of Benami transactions?
(a) To transfer property ownership legally
(b) To conceal the true ownership of property
(c) To promote tourism in tribal areas
(d) To support tribal landholders financially
Ans: (b)
Sol: Benami transactions involve concealing the true ownership of property by purchasing it in someone else’s name.
Q2: Under which law are Benami transactions prohibited?
(a) Forest Rights Act, 2006
(b) Benami Transactions (Prohibition) Amendment Act, 2016
(c) Wildlife Protection Act, 1972
(d) Panchayats (Extension to Scheduled Areas) Act, 1996
Ans: (b)
Sol: The Benami Transactions (Prohibition) Amendment Act, 2016 makes such practices illegal.
Q3: What is the total area of the Pench Tiger Reserve in Madhya Pradesh?
(a) 1,500 km²
(b) 1,179.63 km²
(c) 800 km²
(d) 2,000 km²
Ans: (b)
Sol: The Pench Tiger Reserve in Madhya Pradesh covers an area of approximately 1,179.63 km².
Q4: What types of properties were linked to Benami transactions in the Pench Tiger Reserve?
(a) Residential houses
(b) Land for resorts
(c) Industrial buildings
(d) Agricultural farms
Ans: (b)
Sol: The identified Benami transactions involved land for two resorts and a planned resort.
Q5: What is the approximate total value of the properties involved in the recent Benami transactions in the Pench Tiger Reserve?
(a) Rs. 10 crore
(b) Rs. 4 crore
(c) Rs. 8 crore
(d) Rs. 1 crore
Ans: (b)
Sol: The total value of the properties linked to these transactions is approximately Rs. 4 crore.
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