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This is an archive article published on February 18, 2011

Adarsh: HC asks CBI to invoke ‘forgotten’ Act

The Bombay High Court on Thursday asked the Central Bureau of Investigation to invoke sections of the rarely used Benami Transactions Act,1988,in the Adarsh Society scam probe.

z The rarely used Act will give investigating agency power to confiscate property acquired under a benami transaction

The Bombay High Court on Thursday asked the Central Bureau of Investigation to invoke sections of the rarely used Benami Transactions (Prevention) Act,1988,in the Adarsh Society scam probe.

Justice B H Marlapalle and Justice U D Salvi,while hearing a group of petitions filed against the controversial high-rise,said the Act was a “strong legislation introduced at the time of Rajiv Gandhi” that could be used effectively in this case.

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“Everyone seems to have forgotten about this legislation. Why is Section 4 (of the Act) not in the FIR?” Justice Marlapalle asked.

The Act gives the investigating agency the power to confiscate property acquired under a benami transaction. “If this Act is invoked,they (CBI) will have more powers. You will have to amend the FIR and invoke Section 4,” Justice Marlapalle said.

Section 4 of the Act refers to the prohibition of the right to recover property held benami. Accepting the court’s suggestion,Additional Solicitor General D J Khambata said the FIR would be amended to include the provisions of the Act.

“Invoking this Act will strengthen the investigating agency to the extent that they will have the power to confiscate the property,if found benami. The property cannot be confiscated under any section of the Indian Penal Code (mentioned in the CBI’s FIR). This legislation,however,has been very rarely used,” Khambata told Newsline.

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In 2009 at a seminar on ‘Fighting crime related to corruption’,Union Law Minister Veerappa Moily had said the immediate implementation of the Act was among the changes proposed by the UPA government to check corruption among government officials.

“In this case,there is a large number of reserve quota. Every membership needs investigation. A flat in south Mumbai is not affordable for some driver or conductor who has retired to a remote place in Maharashtra,” Justice Marlapalle remarked.

Arguing for social activist Simpreet Singh,who had filed a petition seeking a CBI probe into the Adarsh scam,advocate Y P Singh told the court that the CBI’s FIR did not name former Chief Minister Vilasrao Deshmukh in whose tenure the irregularities in the case were perpetrated. “How will the investigation reach its logical end if such big names are not in the FIR?” Singh asked.

He told the court that Deshmukh had the file pertaining to the matter for five months and alleged that a lot of manipulation of records took place during that time.

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Advocate General Ravindra Kadam,however,said if Singh had sought a CBI inquiry in the case he should now show faith in the agency and let it carry out the investigations. The court has sought a progress report of investigations in three weeks.

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