Trouble for Shah Rukh Khan: I-T department attaches Alibag farmhouse

In what could spell trouble for Shah Rukh Khan, a report in Business Standard mentioned that the Income Tax department has provisionally attached Shah Rukh Khan's Deja Vu Farms Pvt Ltd located at Alibag in Maharashtra.

The attachment notice was issued under the Prohibition of Benami Property Transactions Act (PBPT) in December, the report said. 

Quoting a senior officer, the report said that under Section 24 of the Act if the investigating officer believed that the person is benamidar, he can issue the attachment notice to that person or beneficial owner (if identity is known).

The law states that the attachment of the property can be done for a period not exceeding 90 days from the date of issuance of the notice, he explained.

According to the report, the property has been spread over an area of 19,960 sq metres and has circle rate of Rs 146.7 million. 

The farmhouse has luxurious amenities like swimming pool, a private beach and a helipad. 

Acording to the newspaper, the main allegation against Shah Rukh Khan is that he had made an application to purchase agricultural land for farming, but instead constructed a farmhouse at Alibag for personal use. 

“The said transaction falls under the definition of “benami transaction as per the Section 2 (9) of the PBPT Act, where Deja Vu Farms has acted as benamidar for the ultimate benefits of SRK. Thus, the actor is a beneficiary for the said under the prescribed law,” said I-T investigation report submitted to adjudicating authority while seeking provisional attachment.

The newspaper claime dto have reviewed the copy of attachment and the investigation report.

The report highlights that the Maharashtra Tenancy and Agricultural Lands Act bars transfer of agricultural lands to non-agriculturists without the permission of the collector or state government. The report further said that the intention behind incorporating Deja Vu was to purchase agricultural lands which at present were being used by SRK as his farmhouse. Since Khan could not have purchased the said land in his individual capacity, a mechanism was devised in the form of Deja Vu, which showed its activity as farming.

The Benami Act defines Benami transaction as a transaction where in a property is held by or transferred to a person, but has been provided or paid by another person. The definition also includes property transactions where i) a transaction been made under a fictitious name; ii) the owner is not aware or denies knowledge of the ownership of the property; iii) the person providing the property is not traceable.

Under the amended Benami Act, , any offender would stand to be punished with imprisonment of up to seven years and be charged a fine which may extend to 25% of the fair market value of the benami property. 

If any false information is provided, it would lead to imprisonment for a time period of six months to five years and a fine of up to 10% of the fair market value of the benami property, will be charged, stated the Gazette report.