Mr. Amanat Ali is an information technology professional currently residing in Mumbai. He first came to Mumbai around 25 years back to join ‘Terabyte Consultancy Limited (TCL)’, as an Assistant Manager - Business Development. At that time, TCL was in its early years of operations, but over the period of time, it expanded its product/service range and market reach apart from a significant improvement in customer response time through the introduction of innovative techniques. TCL’s ethical work culture and employee-friendly policies allowed it to retain employees for a longer duration. Mr. Ali is still serving TCL as a Vice President - Of branding & Innovation. TCL is famous for its office utility software, which is also in high demand abroad. Around 40% of the top-line is contributed by export. TCL exported one of its software, which was transmitted over the electronic media on 30th June 2020, for which the invoice was generated and issued on 25th June 2020. 

Mr. Ali and his team developed software, a couple of years back, which was capable to act as a testing portal to conduct online exams. The software with the help of artificial intelligence automatically generated a pop-up at the screen of the candidate’s device that he/she is not viewing towards the camera and a similar pop-up also gets generated at the screen of the invigilator (who invigilates digitally from the control room, through the camera of candidates’ device and control of screen). In this manner software actually reduced the scope of using unfair means to a large extent during the online exam, even for candidates appearing in online exams from remote locations. The said software passed the QC test and performance during dry-run at Quick-fix, was found acceptable, and was finally launched. This was the first time TCL has developed any testing software. 

Mr. Murthy, Vice President-Strategy & Marketing at TCL, appreciated the usage of the software in the lights of the changing scenario in the education sector, considering the need for such testing software in the times of digital education. But he also witnessed the presence of many active players in the market who were (at then) already rendering service of conducting the online exam for testing agencies either at their own location (test centres) or remote location; hence, it was not easy for TCL to penetrate in the market and capture reasonable share. TCL entered a ‘usage-based fee agreement’ with the leading colleges in different cities to use their respective computer lab facilities. In this manner, TCL also got equipped with testing centers in different cities. Against the competitors, they had the leverage of AI-equipped testing software. TCL, against the prevailing market prices of ` 600/- and ` 320/- per candidate for the conduct of online tests at the centre and remote respectively, offered and charged the price of ` 500/- and ` 250/- respectively. Since TCL has its own server and other IT facilities including human resources, hence after covering the directly attributable and overhead (for shared services) costs, it earns tiny profits too, which are substantially lesser than the TCL’s average rate of earning. After 2 years of the grand success of testing software in the market, TCL's market share reached 54% in the online testing segment. Many small and immature players had to quit during this period. Only those who reduced their prices (and were able to cover their operating costs with such reduced prices) were able to survive. Current VP-Marketing of TCL decided to shoot up prices to ` 580/- and ` 300/- per candidate for online tests at the centre and remote respectively. TCL successfully managed to retain a 47% market share. The loss of market share was compensated by high profits due to enhanced prices, hence the bottom line improved a bit. Mr. Liaquat Ali, the younger son of Mr. Amanat Ali, who holds an Indian passport moved abroad for higher studies and research in the field of building things (generally materials and devices) on the scale of atoms and molecules (nano-technology) and molecular biology. After completing his studies, he was offered a role as a teaching assistant at the prestigious University of Cambridge, which he gratefully accepted. There he met Ms. Nusrat, a research scholar in data science who is a British resident. Both got married to each other during the calendar year that just ended. 

The family of Mr. Liaquat basically belongs to Hyderabad. Despite the fact, that Ms. Nusrat never has been to India, she was tempted by the Indian culture and traditions and wanted to settle in India. Mr. Liaquat purchased an apartment in Hyderabad in the joint name of himself and his Khatoon-E-Khanah (wife), after around six months of their marriage. The payment was made through a debit entry to a non-resident account maintained by Mr. Liaquat. This apartment is their first owned immovable property. The apartment is in Deccan Residency Towers - II, which is currently under construction. Deccan Residency Towers are promoted and developed by Deccan Real Estate and Infra Limited (DREIL). DREIL decided to develop the Deccan Residency Towers in three separate phases. DREIL registered the project with State RERA Authority while planning for Deccan Residency Towers - I (which is currently on the verge of completion). 

The MD at DREIL is very enthusiastic about branding and digital marketing. He is of the opinion that DREIL is eligible to advertise and accept the applications for allotment of flats and apartments at Deccan Residency Towers - II either themselves or through real estate agents, without fresh registration, hence started marketing in full swing. Mr. Liaquat booked an apartment through Mr. Miraj who is a registered real estate agent under RERA and he charged a lump-sum amount as the commission which is equal to 1.25% of the cost of the apartment. The payments which DREIL received from allottees against the flats and apartments at Deccan Residency Towers - I was kept in a separate bank account with a scheduled bank, to the extent of 85% only (because due to recent lock-down, the remaining amount is used by DREIL to meet general expenditure) and as such the deposited amount was gradually used to meet the construction cost and cover the land cost of Deccan Residency Towers - I. Ms. Saba, who is the daughter of Mr. Amanat Ali, is working as a medical professional in AIIMS Rishikesh. Mr. Amanat Ali visited her daughter on her birthday and finds the PG house where her daughter is staying is not fully equipped. Considering an investment perspective (including the price of resale) and the comfort for her daughter, he bought the studio apartment by making a payment of ` 19.99 lakhs, registered in the name of Ms. Saba. The price of the apartment is equal to the fair market value. Mr. Amanat Ali purchased another house in Hyderabad in the name of his mother because after retirement he also wishes to settle in Hyderabad. This house is within walking distance from Deccan Residency Towers - II. 

The deal of the house was negotiated for ` 1.25 crores, due to mild recession whereas the fair market value of such a house is ` 1.40 crores on the date of registration, but now the same has fallen to ` 1.30 crores. 

If anyone amongst the aforementioned persons is a benamidar, then what shall be the quantum of penalty leviable and upon whom it shall be levied?

Answer rating: 100% (QA)

Solution As per section 53 of the Act where any person enters into a benami transaction in order ... View the full answer