2022 (11) TMI 114 - HC - Benami Property

Prohibition of Benami Property Transactions - Attachment, adjudication and confiscation orders - respondent No.5 exercising powers under Section 18(2) of the Benami Property Act has provisionally attached the properties mentioned in the aforesaid orders - petitioner submits that the relevant documents were seized by Special Investigation Team led by the Assistant Commissioner of Police following encounter on 08.08.2016 in which the petitioner s brother viz., Nayeemuddin, who was the petitioner in 2022 (7) TMI 530 - TELANGANA HIGH COURT was killed. The seized documents include several sale deeds as well as link documents - HELD THAT - Adjudicating Authority is empowered to make or cause to be made inquiries and to call for reports or evidence as it deems fit. It has also the authority to take into account all relevant materials besides reply of the notice and thereafter, to take a decision one way or the other holding the property not to be a benami property and revoking the attachment order or holding the property to be a benami property and confirming the attachment order. Considering the fact that petitioner before us is the sister of late Nayeemuddin, who was the petitioner in 2022 (7) TMI 530 - TELANGANA HIGH COURT being killed in encounter, and facing stringent provisions of the Benami Property Act, it would meet the ends of justice if the adjudicating authority, on receipt of application of the petitioner, calls for the relevant documents/evidence from the authorities including the Special Investigating team and thereafter hand over copies of the same to the petitioner so as to enable her to make effective defence. Directions - Petitioner shall submit application before the Adjudicating Authority within two (02) weeks from today mentioning therein the documents required for her defence and in whose custody the documents are being kept.On receipt of such application, the Adjudicating Authority shall requisition the relevant documents/evidence from the concerned authorities. On receipt of the documents/evidence by the Adjudicating Authority, petitioner or her authorised representative shall be permitted to go through the same and on their request, photocopies of such documents may be made available to the petitioner or her authorized representative.Thereafter, petitioner shall file her reply to the notice issued by the Adjudicating Authority

Summary

Issues:
1. Provisional attachment of properties under the Prohibition of Benami Property Transactions Act, 1988.
2. Availability of relevant documents for effective defense before the Adjudicating Authority.

Issue 1: Provisional Attachment of Properties
The petitioner challenged the orders passed by respondent No.5 under Section 24(4)(b)(i) of the Benami Property Act, where properties were provisionally attached. The respondent exercised powers under Section 18(2) of the Act to attach the properties until the Adjudicating Authority makes a final decision under Section 26(3) of the Act. The petitioner argued that due to the seizure of relevant documents by the Special Investigation Team, including sale deeds and link documents, during an encounter involving the petitioner's brother, the petitioner faced difficulties in presenting an effective defense against the provisional attachment orders.

Issue 2: Availability of Relevant Documents for Defense
The High Court referred to the relevant provisions of the Benami Property Act, emphasizing the importance of attachment, adjudication, and confiscation of properties under the Act. The Adjudicating Authority plays a crucial role in determining whether a property is benami or not. The Court noted that the petitioner, being the sister of the deceased involved in the encounter, faced challenges under the stringent provisions of the Act. To ensure justice, the Court directed the petitioner to submit an application to the Adjudicating Authority specifying the required documents for her defense. The Authority was instructed to obtain the relevant documents from the concerned authorities, provide copies to the petitioner, allow her to examine them, and then proceed with the adjudication based on the petitioner's reply and all other materials on record.

In conclusion, the High Court issued directions to facilitate the petitioner's access to necessary documents for a fair defense before the Adjudicating Authority. The Court disposed of the Writ Petition without imposing any costs, and any related miscellaneous petitions were closed as a result of the judgment.