Hyderabad: High-Stakes Real Estate Scandal: Jubilee Hills Land Under Tax Radar

Hyderabad: In a major crackdown on benami properties, the Benami Prohibition Unit (BPU) in Hyderabad has issued a provisional attachment order for a prime property worth approximately ₹150 crore in the upscale Jubilee Hills area.

The order, issued under Section 24(3) of the Prohibition of Benami Property Transactions Act, 1988, prevents any sale or transfer of the property for the next four months.

Benami Ownership Unraveled

The land, spanning 4,000 square yards in survey Nos. 105 and 106 of Jubilee Hills, Shaikpet mandal, was allegedly held by Mahadev Rathi, a benamidar. However, investigations revealed that the actual owner was businessman Shiv Shankar Taparia.

The property was initially registered in Rathi’s name in 2017 through two sale deeds worth ₹4 crore each, totaling ₹8 crore. However, the BPU has now valued the property at an estimated ₹150 crore.

Rathi, who hails from Odisha and works in a textile firm, did not possess a known source of income that could justify such a high-value transaction. This discrepancy led authorities to dig deeper, eventually tracing ownership back to Taparia.

Legal Action and Restrictions Imposed

The BPU has officially informed the Telangana stamps and registration department to block any attempts at ownership transfer. Additionally, a letter has been sent to the Golconda sub-registrar’s office, confirming the identification of the property as benami and placing it under restriction until adjudication under the PBPT Act is complete.

The public notice regarding the attachment was issued on January 7, 2025, making it clear that any attempt to sell or encumber the property would be illegal without explicit approval from the authorities.

Business Links of the Alleged Beneficiary

According to records from the Ministry of Corporate Affairs, Taparia is the director of two paper mill companies—Tirupati Kagads Private Limited and Harishankar Paper Products Private Limited. Authorities are now probing whether funds from these businesses were used to acquire the property under a benami arrangement.

Crackdown on Benami Properties Intensifies

This attachment is part of a broader effort by tax authorities to crack down on benami transactions and undisclosed assets in Hyderabad. With real estate prices soaring in prime locations like Jubilee Hills, authorities are closely monitoring suspicious transactions and financial irregularities.

Officials have indicated that further legal action could follow after a detailed inquiry into the financial dealings of both Rathi and Taparia. If the benami nature of the property is confirmed, it could eventually be confiscated by the government.

This case serves as a strong reminder that authorities are tightening their grip on illicit financial practices in the real estate sector, with more such investigations likely in the coming months.