Disposed

M/S Sobha Limited v. the Initiating Officer

Karnataka HC5 Sept 2022WP/1429/2021

Case brief

AI extract

What is this about?

Court disposed of writ petitions challenging the retrospective operation of the 2016 Amendment Act to the Prevention of Benami Transactions Act. Relying on a recent Supreme Court decision holding the Act prospective, the Court voided proceedings based on a wrong legal assumption and set aside interdictions on property registration.

What did the court decide?

Impugned proceedings voided as based on error; interdiction on registration set aside; all petitions disposed of.

M/S Sobha Limited Vs the Initiating… — Constitutional and Fundamental Rights | Karnataka HC (2022)

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IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 5^TH DAY OF SEPTEMBER, 2022

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BEFORE

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THE HON'BLE MR. JUSTICE KRISHNA S.DIXIT

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WRIT PETITION NO.27322/2019(GM-RES) C/W WRIT PETITION NOS.25851/2019, 11523/2020, 13639/2020, 1429/2021(GM-RES)

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IN W.P.NO.27322/2019:

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BETWEEN:

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SMT. GOWRAMMA, W/O LATE SRI. D. K. KEMPEGOWDA, AGED ABOUT 80 YEARS, KODIHALLI, DHODDI VILLAGE, KANAKAPURA TALUK, RAMNAGARA DISTRICT, KARNATAKA -562 117. (SENIOR CITIZENSHIP NOT CLAIMED)

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...PETITIONER

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(BY SRI.SHASHIKIRAN SHETTY, SENIOR COUNSEL FOR SRI.PAVAN G N, ADVOCATE)

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AND:

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THE INITIATING OFFICER UNDER THE PBPT ACT, 1988 DEPUTY COMMISSIONER OF INCOME TAX(BPU) NO.208, 2^ND FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU-560 001.

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THE ADJUDICATING AUTHORITY UNDER THE PROHIBITION OF BENAMI PROPERTY TRANSACTION ACT, 1988 ROOM NO.26, 4^TH FLOOR, JEEVANDEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110 001.

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UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTEMTN OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001.

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… RESPONDENTS

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(BY SRI.K V ARAVIND, ADVOCATE FOR R1; V.C.O DATED 16/03/2021 POSTAL TRACK SHEET FOR R2 IS ACCEPTED; SRI. M B NARAGUND A/WITH SRI. H SHANTHI BHUSHAN, ASG FOR R3)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE AS UNCONSTITUTIONAL THE INTERPRETATION OF RESPONDENTS TO THE RETROSPECTIVE OPERATION PROVIDED BY THE AMENDING ACT OF 2016 IN RESPECT OF THE PROVISIONS VIDE SECTIONS 1, 2(8), 2(9)(A), 2(26), 19(1)(b), 21(1), 24(1), AND 24(3), 24(a)(i), 24(5), 26(1) AND 26(3) AND THEREFORE, TO BE NULL AND VOID ANNEXURE-A AND ETC.,

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IN W.P.NO.25851/2019:

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BETWEEN:

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SMT. GOWRAMMA, W/O LATE SRI. D. K. KEMPEGOWDA, AGED ABOUT 80 YEARS, KODIHALLI, DHODDI VILLAGE, KANAKAPURA TALUK, RAMNAGARA DISTRICT, KARNATAKA -562 117. (SENIOR CITIZENSHIP NOT CLAIMED)

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...PETITIONER

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(BY SRI.A SHANKAR, ADVOCATE A/WITH SRI.D N NANJUNDA REDDY, SENIOR COUNSEL FOR SRI.PAVAN G N, ADVOCATE)

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AND:

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THE INITIATING OFFICER UNDER THE PBPT ACT, 1988 DEPUTY COMMISSIONER OF INCOME TAX(BPU) NO.208, 2^ND FLOOR, C R BUILDING, QUEENS ROAD, BENGALURU-560 001.

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UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTEMTN OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001.

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… RESPONDENTS

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(BY SRI.K V ARAVIND, ADVOCATE FOR R1; SRI. M B NARAGUND, SENIOR COUNSEL A/WITH SRI. H SHANTHI BHUSHAN, ASG FOR R2)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE AS UNCONSTITUTIONAL THE RETROSPECTIVE OPERATION PROVIDED BY THE AMENDING ACT OF 2016 IN RESPECT OF THE PROVISIONS VIDE SECTIONS 1, 2(8), 2(9)(A), 2(26), 19(1)(b), 21(1), 24(1), AND 24(3) AND THEREFORE, TO BE NULL AND VOID ANNEXURE-A AND ETC.,

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IN W.P.NO.11523/2020:

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BETWEEN:

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SRI.H.N.SHOBHAN S/O HVN MURTHY, AGED ABOUT 50 YEARS, NO.23, RAJEEV NAGARA, 7^TH MAIN, 4^TH PHASE, 7^TH BLOCK, 3^RD STAGE, BANASAHNKARI, BENGALURUR 560 085.

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SRI. K. S. ESWARAIAH, S/O SHIVANNA K S, AGED 54 YEARS,

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NO.204, 2^ND FLOOR, SLLR MANSION, 12^TH MAIN, 1^ST BLOCK, RAJAJINAGARA, BENGALURU 560 010.

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SRI. SURESH JAGANNATH SHETTY, S/O JAGANNATH SHETTY, AGED 49 YEARS, RAJKAMAL KEDAR, UDAYAVARA, UDUPI 574 118.

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SRI. RUPESH JANGID S/O SATYANARAYAN, AGED ABOUT 39 YEARS, NO.261, 80 FT ROAD, BANK COLONY, 9^TH MAIN, 3^RD STAGE, 2^ND PHASE, BANASHANKARI, BENGALURU-560085.

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…PETITIONERS

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(BY SRI.P.S.RAJAGOPAL, SENIOR COUNSEL FOR SRI. SAMARTH PRAKASH, ADVOCATE)

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AND:

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UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI-110 001.

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THE INITIATING OFFICER UNDER THE PBPT ACT 1988 DEPUTY COMMISSIONER OF INCOME-TAX (BPU) NO.208, 2^ND FLOOR, C R BUILIDING, QUEENS ROAD, BENGALURU-560 001.

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M/S SOBHA LIMITED., SOBHA SARJAPUR-MARATHAHALLI, OUTHR RING ROAD (ORR), BELLANDUR POST, BENGALURU-560 103.

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THE SUB REGISTRAR, BANNASHANKARI, NEXT TO APMC YARD, KANAKAPURA ROAD, BANASHANKARI,

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BENGALURU 560 070.

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THE INSPECTOR GENERAL OF REGISTRATION AND COMMISSIONER OF STAMPS, KANDAYA BHAVANA, 8^TH FLOOR, K.G.ROAD, BENGALURU-560 001.

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…RESPONDENTS

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(BY SRI.MADANAN PILLAI R,CGC FOR R1; SRI.K.V.ARAVIND, ADVOCATE FOR R2 & R3; SMT. RASHMI PATEL, HCGP FOR R4 & R5)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE BENAMI TRANSACTIONS (PROHIBITION) AMENDMENT ACT 2016 AS PROSPECTIVE IN OPERATION WITH EFFECT FROM 01.11.2016 AND ETC.,

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IN W.P.NO.13639/2020:

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BETWEEN:

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SRI. N. V. RAMESH, S/O N. Y. VISHWANATHAM, AGED ABOUT 55 YEARS,

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1A. SMT. SHAMALA D, W/O N V RAMESH, AGED ABOUT 49 YEARS,

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BOTH ARE R/A NO 412, 17^TH CROSS, SARASWATHINAGAR, VIJAYANAGAR, BENGALURU 560 040.

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SRI. D. SREESHA, S/O D. RAMACHANDRA, AGED ABOUT 49 YEARS,

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2A.MRS. CHAITRA C.P., W/O D SREESHA, AGED ABOUT 42 YEARS, BOTH ARE R/A NO.239 B 2^ND B MAIN, 2^ND D CROSS, GIRINAGAR FIRST PHASE, BENGALURU 560 085.

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SRI. SUJITH EMBRANDIRI, S/O E EMBRANDIRI, AGED ABOUT 51 YEARS,

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3A.SMT SAVITHA EMBRANDIRI W/O SUJITH EMBRANDIRI AGED ABOUT 47 YEARS

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BOTH ARE R/A NO.1064, PRESTIGE BROOKLYN HEIGHTS, OPPOSITE BANASHANKARI TEMPLE, KANAKAPURA ROAD, J P NAGAR, 1^ST PHASE, BENGALURU-560 070.

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SRI. RAMAKRISHNA REDDY MARTALA, S/O RAMI REDDY MARTALA, AGED ABOUT 40 YEARS,

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4A.SMT.BHARATHI DEVIREDDY, W/O RAMAKRISHNA REDDY MARTALA, AGED ABOUT 39 YEARS,

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BOTH ARE R/A NO.732, 2^ND FLOOR, 3^RD MAIN, PADMANABHA NAGAR BENGALURU-560 070.

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SRI. SRIDHAR. V. G, S/O GOPALAKRISHNAIAH SETTY AGED ABOUT 48 YEARS NO.3011, 1^ST FLOOR, I WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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PRADEEP NELAMANGALA, S/O GOPALA RAO. N. C, AGED ABOUT 41 YEARS,

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6A.SRI. GOPAL RAO. N. C, S/O N CHAKRAPANI RAO, AGED ABOUT 79 YEARS, NO.2111, 11^TH FLOOR, II WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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SRI. VENKATESH MURTHY. C. K, S/O KRISHNAPPA. V, AGED ABOUT 45 YEARS,

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7A.SMT. USHA VENKATESH, W/O VENKATESH MURTHY. C. K, AGED ABOUT 42 YEARS,

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BOTH ARE R/A NO.11, F2, 2^ND FLOOR, GURUKRUPA APARTMENTS, 1^ST MAIN ROAD, DATHAREYA NAGAR, HOSAKEREHALLI, BANASHANKARI 3^RD STAGE, BENGALURU-560 085.

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SMT. CHAYA. B. H, W/O SAMPATH. C, AGED ABOUT 32 YEARS,

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8A.SRI. SAMPATH. C, S/O CHANDRE GOWDA, AGED ABOUT 36 YEARS,

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BOTH ARE R/A NO.2113, 11^TH FLOOR, II WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKEREHALLI, BENGALURU-560 085.

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SRI. DINESHA. M. S, S/O N. SADANANDA RAO, AGED ABOUT 42 YEARS, NO.2126, 12^TH FLOOR, II WING,

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SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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SRINIVASA JANARDHAN, S/O JANARDHAN, AGED ABOUT 67 YEARS,

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10A.SMT. VRINDA SRINIVAS, W/O SRINIVAS JANARDHAN, AGED ABOUT 59 YEARS, R/A NO.1063, 6^TH FLOOR, I WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI BENGALURU-560 085.

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SRI. SUNIL NAGARAJAN, S/O LATE R NAGARAJAN, AGED ABOUT 45 YEARS,

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11A.SMT. VIRAJA MATHAD, W/O SUNIL NAGARAJAN, AGED ABOUT 40 YEARS, R/A NO.2015 1^ST FLOOR, II WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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SRI. MAKAM SRINIVAS, AGED ABOUT 41 YEARS, S/O M ANAND RAJ,

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12A.SMT. SUDHA .V, AGED ABOUT 37 YEARS, W/O MAKAM SRINIVAS, R/AT NO.2015, 10^TH FLOOR, II WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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SMT. NAGAPRADA T. R, W/O VIJAYA VAMSHI KRISHNA. D, AGED ABOUT 35 YEARS,

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13A.SRI. VIJAYA VAMSHI KRISHNA D, S/O D VENKOBAYYA, AGED ABOUT 39 YEARS, R/A NO.1132, 13^TH FLOOR, I WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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SRI. PAVAN BHAT KUNDAPURA, S/O K NARASIMHA BHAT, AGED ABOUT 23 YEARS, R/A FLAT NO.2136, WING-2, SOBHA VALLEY VIEW APARTMENTS, OPP: V LEGACY CONVENTION HALL, DSOUZA NAGAR, HOSAKAREHALLI, BENGALURU 560 085.

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SRI. YERUPELLA SURESH KUMAR, AGED ABOUT 41 YEARS, S/O Y. R. K. V. PRASAD RAO.

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15A.SMT. YERUPELLA JAYALAKSHMI, AGED ABOUT 41 YEARS, W/O W. LAXMAN RAO, R/AT NO.3034, 3^RD FLOOR, II WING, SOBHA VALLEY VIEW, V LEGACY ROAD, HOSAKAREHALLI, BENGALURU-560 085.

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…PETITIONERS

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(BY SRI.RAJESWARA P N, ADVOCATE)

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AND:

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UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI 110 001.

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THE ADJUDICATING AUTHORITY UNDER THE PBPT ACT 1988 ROOM NO.26, 4^TH FLOOR, JEEWANDEEP BUILDING, PARLIAMENT STREET, NEW DELHI 110 001.

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APPROVING AUTHORITY (BPU), JOINT COMMISSIONER OF INCOME, TAX, (BP), C. R. BUILDING, QUEENS ROAD, BENGALURU 560 001.

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THE INITIATING OFFICER UNDER THE PBPT ACT 1988 DEPUTY COMMISSIONER OF INCOME TAX (BPU) NO.208, 2^ND FLOOR, C. R. BUILDING QUEENS ROAD, BENGALURU 560 001.

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SMT. GOWRAMMA, W/O LATE D. K. KEMPEGOWDA, AGE MAJOR. R/A KODIHALLI, DHODDI VILLAGE, KANAKAPURA TALUK, RAMANAGAR DISTRICT 562 117.

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M/S SOBHA LIMITED., SOBHA SARJAPUR-MARATHAHALLI, OUTER RING ROAD (ORR), BELLANDUR POST, BENGALURU 560 103. REPRESENTED BY ITS MANAGING DIRECTOR. SRI. JAGDISH CHANDRA SHARMA, AGED ABOUT 62 YEARS, S/O LATE P M SHARMA,

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SUB REGISTRAR, 1^ST FLOOR, APMC BUILDING, KANAKAPURA ROAD, BANASHANKARI, BENGALURU-560 070.

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…RESPONDENTS (BY SRI. MADANAN PILLAI R, ADVOCATE FOR R1;

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SRI. K V ARAVIND, ADVOCATE FOR R2 –R4; SMT.RASHMI PATEL, HCGP FOR R7; SRI. SHASHIKIRAN SHETTY, SENIOR ADVOCATE A/WITH SMT. LATHA S SHETTY, ADVOCATE FOR R5; SRI. S SANJAY NAIR, ADVOCATE FOR R6)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT TO THE R-1 TO 4 AUTHORITIES TO RELEASE THE LANDS REFERRED TO IN TABLE 14 OF THE PROVISIONAL ATTACHMENT ORDER, DTD 09.04.2019 VIDE ANNX-S FROM THE ORDER OF ATTACHMENT AND IN EXCHANGE EFFECT PROVISIONAL ATTACHMENT IN RESPECT OF 33 UNBOOKED APARTMENTS AS PER DETAILS FURNISHED IN ANNX-V IN THE SOBHA VALLEY VIEW-HERITAGE PHASE I BUILDING AND THEREBY TO PERMIT THE EXECUTION AND REGISTRATION OF SALE DEEDS IN FAVOUR OF THE PETITIONERS BY R-5 AND R- 6 IN THE OFFICE OF THE R-7 JURISDICTION SUB REGISTRAR IN FAVOUR OF THE PETITIONERS UNDER THE RESPECTIVE AGREEMENTS OF SALE.

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IN W.P.NO.1429/2021:

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BETWEEN:

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M/S SOBHA LIMITED., SOBHA SARJAPUR-MARATHAHALLI, OUTER RING ROAD (ORR), BELLANDUR POST, BENGALURU-560 03. (REPRESENTED BY ITS MANAGING DIRECTOR JAGAIDSH CHANDRA SHARMA AGED ABOUT 62 YEARS S/O LATE P M SHARMA).

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…PETITIONER

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(BY SRI.CHYTHANYA K K, ADVOCATE)

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AND:

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THE INITIATING OFFICER UNDER THE PBPT ACT 1988.,

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DEPUTY COMMISSIONER OF INCOME-TAX (BPU),

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NO.208, 2^ND FLOOR, C R BUILDING, QUEENS ROAD,BENGALURU-560 001.

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APPROVING AUTHORITY (BPU), JOINT COMMISSIONER OF INCOME-TAX (BP) C R BUILDING, QUEENS ROAD, BENGALURU-560 001.

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THE ADJUDICATING AUTHORITY UNDER THE PBPT ACT 1988 ROOM NO26, 4^TH FLOOR, JEEWANDEEP BUILDING, PARLIAMENT STREET, NEW DELHI-110 001.

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UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001.

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SMT. GOWRAMMA, WIFE OF LATE SRI. D. K. KEMPEGOWDA, AGED ABOUT 80 YEARS, KODIHALLI DHODDI VILLAGE, KANAKAPURA TALUK, RAMNAGAR DISTRICT-562 117.

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SHRI. D. K. SHIVKUMAR, S/O SHRI D K KEMPEGOWDA, NO.252, 18^TH MAIN,SADASHIVNAGAR, BENGALURU-560 103.

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…RESPONDENTS

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(BY SRI. K V ARAVIND, ADVOCATE FOR R1-R4; SRI.SHASHI KIRAN SHETTY, SENIOR ADVOCATE FOR R5; SRI. G N PAVAN, ADVOCATE FOR R5;

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SRI. ROHAN HOSMATH, ADVOCATE FOR R6)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 OF THE CONSTITUTION OF INDIA, PRAYING TO DECLARE AS UNCONSTITUTIONAL THE INTERPRETATION OF

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RESPONDENTS TO THE RETROSPECTIVE OPERATION OF SUBTANTIVE PROVISIONS OF THE BENAMI TRANSACTIONS (PROHIBITION) AMENDMENT ACT, 2016 (NO.43 OF 2016) TO BE NULL AND VOID ANNEXURE-A AND ETC.,

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THESE PETITIONS COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:-

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ORDER

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Petitioners are knocking at the doors of Writ Court in effect, seeking a declaration that certain provisions of the Prohibition of Benami Property Transaction Act, 1988 as amended by Amendment Act, 2016 are prospective in operation and therefore, the impugned proceedings taken up with an assumption of the said provisions being retrospective in effect are liable to be voided. Some of the petitioners have the grievance against the interdiction of registration of conveyances issued by the official respondents.

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Learned ASG Mr. Nargund appearing for the answering respondents fairly agrees that the subject provisions of the Amendment Act have been held to be prospective in effect by the Apex Court in UNION OF

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INDIA Vs. GANAPATHI DEALCOM PVT. LTD Civil Appeal No.5703/2022 disposed off on 23.08.2022, which decision learned advocates appearing for the petitioners heavily banked upon in support of their cases. However, he seeks a short accommodation contending “a decision is being taken at the highest level”.

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Having heard the learned counsel appearing for the parties and having perused the petition papers, this Court is of a considered opinion that there is no reason to keep the matter pending any longer in view Apex Court decision supra . The impugned proceedings having been taken up with a wrong assumption of the subject provisions of the Amendment Act being retrospective in operation, have a demonstrable error apparent on their face and therefore, are liable to be voided. Further, the interdiction of execution & registration of the conveyances is also liable to be set at naught. When highest Court of the Country has clarified the legal position, the contention that “a decision is being

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taken at the highest level and therefore, matter be kept

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pending for a short while” does not merit acceptance.

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Ordered accordingly and all the petitions stand disposed off, costs having been made easy.

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Sd/JUDGE

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Bsv

M/S Sobha Limited v. the Initiating Officer

Case brief

What is this about?

What did the court decide?

M/S Sobha Limited v. the Initiating Officer

Case brief

What is this about?

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