ED arrests 3 individuals, including former IT Official in TDS refund fraud case

The Enforcement Directorate (ED) has arrested three persons, including a former Income Tax (I-T) official, in connection with a Rs 263 crore Tax Deducted at Source (TDS) refund fraud. The accused are Tanaji Mandal Adhikari, Bhushan Patil, and Rajesh Shetty.

Adhikari was a senior tax assistant in the I-T department when he allegedly used his access to the login credentials of his supervisory authorities to generate fake TDS refunds. He is said to have colluded with Patil and Shetty to transfer the proceeds of the fraud into their bank accounts.

The ED's investigation has revealed that the fraud was carried out between November 2019 and November 2020. A total of 12 fraudulent TDS refunds were generated, amounting to Rs 263 crore. The proceeds of the fraud were subsequently transferred into the bank accounts of the accused persons, persons related to them, and shell companies.

The ED has provisionally attached assets worth Rs 166 crore in connection with the case. The agency is further investigating the matter to ascertain the full extent of the fraud and to identify other persons involved.

The arrest of Adhikari and the other accused is a significant development in the case. It sends a strong message that the government is committed to bringing to justice those who defraud the exchequer. It also highlights the need for greater vigilance on the part of the I-T department to prevent such frauds from happening in the future.

Here are some of the key details of the case

• The fraud was carried out by a former I-T official, Tanaji Mandal Adhikari, and two other associates, Bhushan Patil and Rajesh Shetty.
• The fraud involved generating fake TDS refunds worth Rs 263 crore.
• The proceeds of the fraud were transferred into the bank accounts of the accused persons, persons related to them, and shell companies.
• The ED has provisionally attached assets worth Rs 166 crore in connection with the case.
• The arrest of the accused sends a strong message that the government is committed to bringing to justice those who defraud the exchequer.