CHENNAI: Former chief minister J Jayalalithaa’s confidante V K Sasikala paid Rs 148 crore to Puducherry-based Naveen Baalaji and his family members for the purchase of their assets, but did not actually transfer the company shares, confirming that it was a benami transaction, the income tax department told the Madras high court on Wednesday.
As per the transaction, shares of Ocean Spray Resort and M/s Bonjour Bonheur Private Limited ought to have been transferred to Sasikala or her nominees. However, the same was not done and this establishes the intention to hide the actual ownership of the shares of the company, said U N Dilip, deputy commissioner of income tax (benami prohibition), in a counter-affidavit filed before Justice Anitha Sumanth.
The counter-affidavit, submitted by counsel for IT department A P Srinivas, said the transactions were evidenced by a memorandum of understanding dated November 22, 2016, signed by Baalaji and his family members in the capacity as directors of the company.
Baalaji also had confirmed in his sworn statement that the MoU contained the properties sold along with the running business. The original MoU and share certificates of the company were found and seized by the department from a premises during the search of assets belonging to Sasikala. “This shows that the intention of Sasikala was to hide the transaction and give a color that Baalaji and his family members are still the shareholders of the company. The modus operandi established the intention that on a later date, Sasikala can get the shares/ property transferred to her or her nominees name for her future benefit,” it said.
The matter relates to an order of provisional attachment passed by the department on January 20, 2020, against Naveen Balaji and five others, alleged to be benamis of Sasikala in the sale of shares of Bonjour Bonheur Private Limited along with Ocean Spray Resort for Rs 148 crore. Navin Baalaji challenged the attachment stating that no opportunity was given to them before passing the order and that they were not provided with the details of the sworn statements of Sasikala and Krishnapriya and others, relied on by the department.
As per the transaction, shares of Ocean Spray Resort and M/s Bonjour Bonheur Private Limited ought to have been transferred to Sasikala or her nominees. However, the same was not done and this establishes the intention to hide the actual ownership of the shares of the company, said U N Dilip, deputy commissioner of income tax (benami prohibition), in a counter-affidavit filed before Justice Anitha Sumanth.
The counter-affidavit, submitted by counsel for IT department A P Srinivas, said the transactions were evidenced by a memorandum of understanding dated November 22, 2016, signed by Baalaji and his family members in the capacity as directors of the company.
Baalaji also had confirmed in his sworn statement that the MoU contained the properties sold along with the running business. The original MoU and share certificates of the company were found and seized by the department from a premises during the search of assets belonging to Sasikala. “This shows that the intention of Sasikala was to hide the transaction and give a color that Baalaji and his family members are still the shareholders of the company. The modus operandi established the intention that on a later date, Sasikala can get the shares/ property transferred to her or her nominees name for her future benefit,” it said.
The matter relates to an order of provisional attachment passed by the department on January 20, 2020, against Naveen Balaji and five others, alleged to be benamis of Sasikala in the sale of shares of Bonjour Bonheur Private Limited along with Ocean Spray Resort for Rs 148 crore. Navin Baalaji challenged the attachment stating that no opportunity was given to them before passing the order and that they were not provided with the details of the sworn statements of Sasikala and Krishnapriya and others, relied on by the department.
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