Lalu Prasad Yadav's family may lose possession of properties worth Rs 128 crore

Lalu Prasad Yadav

In a major setback for former Bihar chief minister and Rashtriya Janata Dal (RJD) supremo Lalu Prasad Yadav, the Income Tax department may soon take possession of some of the properties owned by his family members, according to a report by The Times of India.

The possession may be taken as the adjudicating authority under Benami Transactions (Prohibition) Act recently confirmed I-T’s provisional attachments of 17 properties.

The properties, spread across Delhi and Bihar’s capital Patna, are estimated to be worth more than Rs 128 crore.

The properties were attached by the I-T department in September 2017 and four cases were registered under the Benami Transactions (Prohibition) Act.

According to the report, the properties attached by the tax authority were allegedly purchased through shell companies by Lalu Prasad’s close aides when he was the railway minister at the Centre.

Ownership of these properties and companies were subsequently transferred to Lalu’s family members, including his wife and former CM Rabri Devi, son and former deputy CM Tejashwi Yadav, daughters Chanda, Misha, Ragini and son-in-law Shailesh Kumar.

The properties include a high-end under construction mall in Patna, a residence in New Friends Colony, New Delhi and a two-and-a-half acre farm near Delhi airport. According to the report, the market value these properties is estimated to be Rs 127.75 crore, a senior I-T official told the newspaper.

I-T department may now take possession of these properties after confirmation of the provisional attachments. It may allow the residents to pay the rent and stay in the properties till the case trial is completed, the report adds.

There is a provision of jail term for up to seven years and a fine of 25 percent of the property’s “fair market value” if the person is convicted under the Benami Act.