BPU Seizes ₹150 Crore Benami Property in Jubilee Hills, Hyderabad

The Benami Prohibition Unit (BPU) in Hyderabad has issued a provisional attachment order for a high-value property in Jubilee Hills, estimated to be worth ₹150 crore. The property, located adjacent to the Jubilee Hills Housing Society, was found to be held by a benamidar, Mahadev Rathi, while the actual owner was identified as businessman Shiv Shankar Taparia. This case is part of ongoing efforts to tackle benami transactions and financial irregularities.

The investigation revealed that the property was acquired in 2017 under Rathi’s name through two sale deeds, each worth ₹4 crore, making a total purchase value of ₹8 crore. However, its present market value is significantly higher. Authorities determined that Rathi, originally from Odisha and residing in Hyderabad, is employed in a textile firm and does not have the financial means to purchase such a property. Further examination of financial records and ownership details pointed to Taparia as the actual owner, who allegedly used Rathi’s name to hide the true ownership.

The investigation was conducted under the Prohibition of Benami Property Transactions Act, 1988, which allows authorities to take action against properties registered under benami names. Section 24(3) of the Act enables provisional attachment to prevent any sale or transfer of such properties. The attachment order, issued on January 7, 2025, will remain in effect for four months. During this period, the property cannot be sold, transferred, or encumbered without official approval.

The Telangana Stamps and Registration Department has been notified to prevent any changes in ownership records. The property, covering 4,000 square yards, falls under survey numbers 105 and 106 in Jubilee Hills, Shaikpet Mandal. A formal request has been sent to the Golconda Sub-Registrar Office to confirm its benami status and ensure it is added to the list of prohibited properties, preventing any unauthorized transactions while legal proceedings continue.

Taparia is a Director in Tirupati Kagads Private Limited and Harishankar Paper Products Private Limited, two firms engaged in the paper industry. Authorities are reviewing financial transactions linked to both Taparia and Rathi to check for any other properties or investments acquired using similar methods. This case is being examined to determine whether Taparia used multiple benamidars to hold real estate or assets under different names.

Benami transactions are commonly used for tax evasion, money laundering, and unaccounted wealth accumulation. In recent years, enforcement agencies have been increasing scrutiny over such cases to curb illegal financial activities. These transactions involve property purchases made in the name of individuals who are not the real owners, often surfacing during tax evasion investigations and financial fraud probes. The Income Tax Department, Enforcement Directorate, and BPU coordinate their efforts to identify and act against these transactions.

The attachment of the Jubilee Hills property is a temporary measure. The case will now proceed to adjudication under the Prohibition of Benami Property Transactions Act, where authorities will assess the final ownership status. If confirmed as a benami asset, the property may be confiscated by the government. Legal consequences for Taparia and Rathi could include financial penalties and prosecution. This action underscores the risks associated with benami transactions and aligns with government efforts to enhance financial transparency and accountability.