The Hunt for Benami Property: A Data-Driven Approach to Financial Investigation
A data-driven approach reveals how Indian authorities are uncovering illicit property holdings and strengthening financial investigations.
The Benami Transactions (Prohibition) Act of 1988 was amended in 2016 to enhance its effectiveness by granting the Indian Income Tax Department the authority to attach and confiscate "benami" properties—those purchased under a false name or where the named owner is not the actual beneficiary. To implement the law, the department established Benami Prohibition Units (BPUs). Detecting such properties is difficult, as they are often concealed and typically revealed only during intrusive actions like searches. With no precedent cases available, the BPU in Delhi adopted a data-driven approach to investigate a case of tax evasion involving a retired civil servant holding benami property. Using registry data on properties and companies, and coordinating search operations across four cities, investigators secured evidence leading to the attachment of assets worth over ₹2.4 billion.
DEVELOPMENT CASE STUDY NO: 2025-1
Additional Details
- Finance sector development
- Governance and public sector management
- India