Mumbai Special Court Orders Restoration of Benami Case Against Chhagan Bhujbal

The Mumbai Special Court has reinstated a case involving benami property transactions against Nationalist Congress Party (NCP) leader Chhagan Bhujbal, his son, nephew, and associated companies. This follows a previous quashing of the case by the Bombay High Court on technical grounds rather than on merits. The restored case will be heard next on October 6.

What’s at Issue

The Income Tax Department first initiated proceedings in 2021, alleging that assets held via companies Armstrong Infrastructure Pvt Ltd, Parvesh Constructions Pvt Ltd, and Devisha Constructions Pvt Ltd were held benami, i.e., in name of others though beneficial ownership lay elsewhere.

The properties in question include real estate in Mumbai and the Girna Sugar Mills in Nashik.

The Bombay High Court had in past quashed the case, citing a Supreme Court precedent; however, it left open the possibility that the case could be revived if a review petition were allowed. The special court noted that the earlier decision did not rule on the underlying merits of the benami allegations.

Legal and Political Implications

For Bhujbal and his associates, restoring the case means renewed legal exposure: hearings, evidence gathering, possibility of penalty or forfeiture. Benami property laws are meant to curb opaque ownership structures and tax evasion, so cases of this sort have wider implications for financial transparency and the rule of law in India.

Politically, Bhujbal is a senior figure in Maharashtra politics. Moves against him are likely to generate political debate: issues of fairness, political targeting, and the independence of prosecution vs the influence of political parties will come into public discourse.