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Shah Rukh Khan's Alibaug Farmhouse Attached By I-T Department Under Benami Property Act

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| January 31 , 2018 , 11:32 IST

Shah Rukh Khan's Alibaug farmhouse was provisionally attached by Income Tax department on Tuesday. The tax department issued a notice to SRK in December last year under the Prohibition of Benami Property Transaction Act (PBPT).

As per the allegations, SRK had made an application to purchase agricultural land for farming but instead constructed a farmhouse for personal use on that land.

The Income Tax authority said it was a "benami transaction" under Section 2 (9) of the Act. The tax authority alleged that Deja Vu Farms acted as benami property for Khan.

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The issue had first come to knowledge in November 2017, when it was reported that the farmhouse was among the 87 properties against whom action could be taken under the Coastal Regulatory Zone (CRZ) violations.

A complaint was also filed at a Mumbai police station, stating that Khan had violated the Maharashtra Tenancy and Agriculture Lands Act; under this Act a property is questionable when a land is purchased for agricultural use and then developed as non-agricultural property without the permission of the collector of state government.

The provisional attachment by the tax authority will have to be ratified by the adjudicating authority of Income Tax after giving Khan a chance to present his arguments on the provisional attachment.

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If the adjudicating authority confirms the attachment, Khan can challenge the order before the Income Tax Appellate Tribunal.

The farmhouse that is located in Alibaug is spread over 19,960 sq metres and has all the luxuries and comforts, like swimming pool, private beach and private helipad etc. The cost of the farmhouse is 146.7 million and is frequently the scene of parties.

Khan needs to file a reply before the authorities within 90 days otherwise the adjudication authorities will confirm the attachment and I-T authorities can initiate a criminal case too.