Former income tax officer and associates arrested in money laundering case

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In connection with a money laundering case involving the fraudulent issuance of TDS, the Enforcement Directorate (ED) has apprehended three individuals, including a former income tax officer. The ED initiated the investigation earlier this year following an FIR filed by the Central Bureau of Investigation (CBI) prompted by a complaint from the Additional Director General (Vigilance-4) of the Central Board of Direct Taxes (CBDT).

The accused individuals involved in the case are Tanaji Mandal Adhikari, a former income tax officer, and his close associates Bhushan Patil and Rajesh Shetty. They appeared before the court on Friday, and the special ED court granted the ED custody of the accused for a period of 10 days.

The investigation, initiated under the Prevention of Money Laundering Act (PMLA), stems from an FIR registered by the Central Bureau of Investigation (CBI) following a written complaint from the Additional Director General (Vigilance-4) of the Central Board of Direct Taxes (CBDT). The complaint pertained to the fraudulent issuance of refunds for the assessment years 2007-08 and 2008-09.

According to the ED, Tanaji Mandal Adhikari, during his tenure as a Senior Tax Assistant, utilized the RSA tokens and login credentials of his supervisory authorities to orchestrate the fraud. He colluded with others to generate TDS refunds totaling over Rs. 263 Crores, which were transferred to various bank accounts, including the account of M/s SB Enterprises (a proprietary concern of Bhushan Anant Patil). The CBI has filed a charge sheet against Tanaji Mandal Adhikari, Bhushan Anant Patil, Rajesh Shantaram Shetty, and others, charging them with offenses under the IPC Act, PC Act [7&13(2) r/w 13(1)(a)], and Section 66 of the IT Act 2000.

In January of this year, the Directorate of Enforcement (ED) took action under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) and attached 32 immovable and movable properties worth Rs. 69,65,99,720/- located in Maharashtra and Karnataka. These assets, including land, flats, and luxury cars, were held in the names of Bhushan Anant Patil, Rajesh Shetty, Sarika Shetty, Kriti Verma, and others. Previously, freezing orders were issued under the PMLA for 33 bank accounts belonging to various entities, with a total balance of Rs. 96,23,47,885/-, and cash amounting to Rs. 2.85 lakh was seized in relation to the case.

During the investigation conducted under the PMLA, it was discovered that Tanaji Mandal Adhikari fraudulently generated 12 TDS refunds amounting to Rs. 263,95,31,870/- between November 15, 2019, and November 4, 2020. These funds were unlawfully credited to the account of M/s SB Enterprises, a proprietary concern of Bhushan Anant Patil. The Proceeds of Crime (PoC) were subsequently transferred to the bank accounts of Bhushan Anant Patil, other related individuals and entities, as well as shell companies.

Further investigation revealed that Kriti Verma had sold a property in Gurugram, Haryana, acquired in 2021 using proceeds of crime amounting to Rs. 1.02 Crore. The sale proceeds were deposited into her bank accounts. As a result, search operations were conducted, and the entire sale proceeds of Rs. 1.18 crore were identified and frozen in her bank accounts.