IT action against VK Sasikala's 1.6k crore assets upheld

CHENNAI: Income tax action against at least 14 benami properties of VK Sasikala, together valued at more than 1,600 crore, has been upheld by Madras high court.
The big-ticket assets includes Spectrum Mall in Perambur, Marg Realities Limited, Bonjour Bonheur Pvt Ltd, Ganga Foundation Pvt Ltd, Global Infoserv Limited and Venus Meridian Agencies Pvt Ltd.
Justice Anita Sumanth, dismissing the petitions filed by some of the promoters of these companies, refused to stall the action initiated by the department. According to the I-T department, the companies and its promoters acted as benami of Sasikala and purchased various properties using demonetised currency notes worth over Rs 1,600 crore. Shares at Spectrum Mall alone was valued at Rs 130 crore.
According to a plea moved by Ganga Foundation, on January 20, 2020 the deputy commissioner of income tax (Benami Prohibition), Chennai, passed an order under section 24(4) of the Act confirming the provisional attachment of 65% shares held by the company in the mall.
The issue pertains to I-T raids in November 2017 on the premises of the company consequent to a separate search conducted at various places connected to Sasikala. During the search, various documents were seized and a statement was recorded from S Senthil Kumar, managing director of the company.
Based on the material, the department initiated proceedings against the company under the Benami Act, resulting in attachment of its shares in the mall. According to the foundation, Spectrum Mall was a joint venture between the company and the land owners in which the company was holding 65% of shares.
As the company was burdened with the interest on the borrowings from the bank, it decided to dispose of the property in 2016.
Meanwhile, advocate S Senthil, claiming to be negotiating on behalf of Jayalalithaa, proposed to buy the property. The price was finalised as Rs 192.5 crore. In the meantime, demonetisation of Rs 500 and Rs 1,000 denominations came into effect.
In December 2016, the company was forced to sign a memorandum and to accept Rs 130 crore in demonetised currency from Senthil, the foundation said in its petition.