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Shahrukh Khan’s farmhouse attached, Income Tax Dept says no farming, only own use

According to the tax probe, Shahrukh Khan, through Deja Vu Farms, made an application for purchase of agriculture land for farming in Alibaug, but subsequently converted the land into a farmhouse for personal use.

Written by Khushboo Narayan | Mumbai | Updated: January 31, 2018 11:43 am
Shahrukh Khan's farmhouse attached, I-T Dept says no farming, only own use Purchase became benami transaction: Income Tax (Express Photo by Pavan Khengre/Files)

The Income Tax department has provisionally attached the Alibaug farmhouse of actor Shah Rukh Khan under the new Benami Transactions (Prohibition) Amended Act, 2016, according to two senior tax officials familiar with the development. According to the tax probe, Khan, through Deja Vu Farms, made an application for purchase of agriculture land for farming in Alibaug, but subsequently converted the land into a farmhouse for personal use. This, the tax authority said, was a “benami transaction” under Section 2 (9) of the Act. The tax authority alleged that Deja Vu Farms acted as benamidar for Khan.

Under the Act, a benami transaction means any transaction in which property is transferred to one person for a consideration paid or provided by another person. The Act provides for provisional attachment and subsequent confiscation of benami properties, whether movable or immovable. It also allows for prosecution of the beneficial owner, the benamidar and the abettor to benami transactions, which may result in rigorous imprisonment up to seven years and a fine of up to 25 per cent of fair market value of the property.

Email, text message and phone calls to the official spokesperson of Red Chillies Entertainment, the firm owned by Khan, did not elicit any response.

The tax department alleged that Deja Vu Farms had so far not shown any income from farming activity. It also alleged that the firm had taken unsecured loans of Rs 8.4 crore from Khan for the purchase of land in Alibaug.

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

The case pertaining to Deja Vu Farms came under the tax scanner last year after Raigad district collector Vijay Suryavanshi claimed that a farmhouse, allegedly owned by the actor along the sea in Alibaug, was among 87 farmhouses on which the collector’s office had sought legal opinion for action over alleged Coastal Regulatory Zone (CRZ) violations.

Subsequently, a complaint was also filed at a Mumbai police station, alleging that Khan had violated the Maharashtra Tenancy and Agricultural Lands Act — it bars transfer of agriculture land to a non-agriculturist without the permission of the collector or state government.

The Alibaug farmhouse of Khan, according to the tax department, is spread over 19,960 sq metres and has amenities such as a swimming pool, beach and a private helipad.

According to the Ministry of Corporate Affairs, Gauri Khan’s father Ramesh Chibba, her mother Savita Chibba and her sister Namita Chibba are directors of Deja Vu Farms.

In the last one year, the tax department has stepped up action under the Benami Transactions (Prohibition) Amendment Act, 2016, which came into force from November 1, 2016.

The tax department has provisionally attached more than 900 benami properties including flats, shops, jewellery and vehicles worth over Rs 3,500 crore, including immovable properties of more than Rs 2,900 crore so far. A statement from the tax department in January said that provisional attachment of benami properties, amounting to more than Rs 150 crore, have been confirmed by the adjudicating authority in five cases.

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  1. Siddharth Bharti
    Jan 31, 2018 at 8:34 pm
    Good job...kick his butttt black and blue... he will reveal all his benami transactions including those made thru underworld and p0rkieee people....
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      Freak Jesus
      Jan 31, 2018 at 3:05 pm
      Pope Francis was 'told about child rapist christian priest' two years before his arrest but the highest priest of Catholic Church Pope hid the fact and lied. Prosecutors expect more people to come forward with allegations of abuse. Pope Francis was told as early as 2014 that a Catholic priest accused of sesxually abusing children in Italy had been reassigned to a school in Argentina, where he has since been arrested on suspicion of child rape again. The Christian Priest Rev Nicola Corradi, 82, was arrested alongside four other men following abuse at the Antonio Provolo Ins ute for hearing-impaired children in Mendoza province. He was named in the scandal that hit the christian ins ute's Verona school in 2009, when 67 students alleged they had been abused. The Verona church diocese apologised to students there and the Vatican sanctioned four priests, though not Rev Corradi. In 2014 the students sent the Pope a letter - acknowledged only this year - again naming him as an abuser,
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        Freak Jesus
        Jan 31, 2018 at 2:57 pm
        The inquiry into children raped by christian padre/priest in christian churches has embroiled Australia’s most senior Catholic cleric father George Pell, now the Vatican’s finance chief, who was questioned over his dealings with paedophile priests in Victoria state in the 1970s. Pell was also accused of historic sesx abuse claims when he was the Catholic Archbishop of Sydney in 2002, but was later cleared of any wrongdoing by the Pope - how convenient. Pope who himself is a molester clears Pell. Since being set up, the commission has made over 3 million referrals to police to look into children being raped by Christian priests/padre in christian churches.
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          Freak Jesus
          Jan 31, 2018 at 2:50 pm
          The St John of God Brothers religious order catholic church fared the worst, with just over 90 percent of members accused of abuse and raping children. The Australian commission investigating rape of children by christian padre in christian churches has spoken to thousands of survivors and heard claims of child abuse involving churches, orphanages, sporting clubs, youth groups and schools. The church in Australia set up the Truth, Justice and Healing Council to coordinate its response. “These numbers are shocking, they are tragic, they are indefensible,” its chief executive Francis Sullivan told the commission. “This data, along with all we have heard over the past four years, can only be interpreted for what it is: a massive failure on the part of the Catholic Christian Church in Australia to protect children from abusers.
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            Freak Jesus
            Jan 31, 2018 at 2:40 pm
            Australia ordered the Royal Commission in 2012 after a decade of growing pressure to investigate child rapes abuse by christian priests padre in christian churches and convents across the country, with the inquiry now in its final phase after four years of hearings. “Between 1950 and 2010, overall 70 percent of christian priests were child rapist perpetrators,” said Gail Furness, the lawyer leading questioning at the inquiry in Sydney. “The accounts were depressingly similar. Children were ignored or worse, punished. Allegations were not investigated. Christian Priests and religious (figures) were moved from church to church where rape of children continued,” she added. “The parishes or communities to which they were moved knew nothing of their past. Documents were not kept or they were destroyed. Secrecy prevailed as did cover ups even by Pope.” The average age of the victims raped was 10 for girls and 11 for boys. Of the 1.8 million rape perpetrators, 90 percent were men.
            (3)(4)
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