Income Tax Department Cracks Down on Benami Deals in Rohtak Liquor Industry
In a significant enforcement action targeting benami transactions within the liquor trade, the investigations wing of the Income Tax Department has initiated legal proceedings against two benamidars and two beneficiaries associated with a liquor company based in Rohtak. This rare move underscores the government's intensified scrutiny of illicit financial activities in the sector.
Legal Framework and Penalties
The complaints have been filed under the Benami Prohibition Act, specifically invoking Sections 3 and 53. These provisions carry severe consequences, including:
- Imprisonment ranging from one to seven years.
- Confiscation of properties and assets without any compensation to the offenders.
The cases were presented before the Special Court for CBI as well as PMLA cases for Haryana, located in Panchkula. During the initial hearing on Friday, the court set March 13 as the next date for arguments and to take cognisance of the complaints.
Origin of the Case
The investigation was triggered by the acquisition of L13 licences by the accused firm for three zones in Rohtak during the financial year 2022-23. A total license fee of Rs 78.39 lakh was paid from three separate bank accounts, which raised red flags for the Income Tax Department's investigations wing.
Upon closer examination, authorities identified two benamidars—individuals who hold properties or assets on behalf of others—and their alleged real beneficiaries. After completing a thorough investigative process, the department formally lodged a complaint against them in the Special Court.
Timeline and Proceedings
According to available information, the complaints were filed on October 23 last year. The first hearing took place on November 27, where defense lawyers submitted their legal papers. The case is currently being presided over by Special CBI-cum-PMLA cases Judge Rajiv Goyal.
Broader Context and Scrutiny
This case is part of a larger pattern of increased vigilance by central government agencies. Over the past five to seven years, liquor licensees and mining department concessionaires have been under the lens of entities such as the Directorate of Enforcement and the Income Tax Department's investigations wing. These agencies are probing allegations of fund siphoning related to state levies.
Audit paragraphs from Comptroller and Auditor General (CAG) reports have prominently highlighted similar irregularities. Such cases are now under scrutiny at various stages, including Benami tribunals and Benami Prohibition Units (BPU) of the Income Tax Department, reflecting a concerted effort to curb financial malpractices.
