Indian tax officials, looking into suspected benami deals, are pressing wealthy individuals about transactions that occurred long before the Benami Transactions (Prohibition) Amendment Act came into force in November 2016. Ironically, even though India's Supreme Court ruled in August last year that the law couldn't be applied retrospectively, tax officials still have powers to call for information about legacy deals that could be subsequently used to invoke harsher legislation under the Prevention of Money Laundering Act. Although the department is currently focusing on properties and assets held by benamidars, an investigation could reveal questionable cash payments to loan operators and the like.
