In a significant development, the Enforcement Directorate (ED) Mumbai has provisionally attached the Malabar Hill flat belonging to Purushottam Chavan, husband of an IPS officer, in connection with the Rs 263 crore Income Tax Refund fraud case. The attachment was carried out under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
Assets Seized Totaling Rs 14.02 Crore
Apart from Chavan’s flat, the ED has also attached several other assets linked to the case. These include land parcels in Lonavala and Khandala owned by accused Rajesh Batreja, balances in a company’s bank account, and insurance policies of accused Rajesh Shetty and Bhushan Anant Patil. The total value of these attached assets is Rs 14.02 crore.
Key Arrests and Judicial Custody
Purushottam Chavan was arrested by the ED in May. Other key individuals arrested in this case include former Income Tax Officer Tanaji Mandal Adhikari, Bhushan Patil, Rajesh Shetty, and Rajesh Brijlal Batreja. All are currently in judicial custody.
The ITR Fraud Scheme
The prime accused, Tanaji Mandal Adhikari, was arrested last year. The investigation revealed that Adhikari, along with others, fraudulently generated and issued TDS refunds from the Income Tax Department, amounting to Rs 263.95 crore. Rajesh Brijlal Batreja played a crucial role in helping Adhikari and others divert proceeds of crime (PoC) totaling Rs 55.50 crore outside India with the assistance of Anirudh Gandhi. These funds were concealed abroad and partially reinvested in Indian companies under the guise of share investments.
Concealment and Diversion of Funds
Initially, Rajesh Batreja repatriated a small portion of the PoC, around Rs 1.70 crore. However, instead of returning the remaining funds, Batreja, in collusion with Purushottam Chavan, further diverted and concealed the PoC both within India and abroad. They managed this with the help of associates in Dubai, effectively laundering the proceeds.
Searches and Seizures
On May 19, following the revelation of Chavan's involvement, the ED conducted searches at his residence and that of his IPS officer wife, seizing several property documents.
Ongoing Legal Proceedings
The ED has filed a prosecution complaint in September 2023 against Tanaji Mandal Adhikari and ten others, which the Special (PMLA) Court has taken cognizance of. With the latest attachments, the total value of immovable and movable properties seized in this case is approximately Rs 182 crore.
Conclusion
The ED's ongoing investigation into the ITR fraud case underscores its commitment to tackling large-scale financial fraud and money laundering. This latest development highlights the agency's efforts to trace and attach illicit assets, bringing the perpetrators to justice.
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