TDS fraud case: ED attaches assets worth nearly Rs 70 crore

ED logo. File Pic

The Enforcement Directorate (ED) on Friday said it has attached 32 immovable and movable properties worth Rs 69,65,99,720 in Maharashtra and Karnataka in a case relating to fraudulent issuance of TDS refund of Rs 263 crore from Income Tax Department.

The case was lodged against Tanaji Mandal Adhikari and others.

According to probe agency officials, these attached assets include land, flats, luxury cars which are held in the name of Bhushan Anant Patil, Rajesh Shetty, Sarika Shetty, Kriti Verma and others.

"Earlier, freezing orders under PMLA in respect of 33 bank accounts of various entities having balance of Rs 96,23,47,885 and seized cash of Rs 2.85 lakh was also issued in the matter," the official said.

The ED initiated investigations under the PMLA based on an FIR registered by the CBI.

The federal probe agency's FIR was on the basis of a written complaint of Additional Director General (Vigilance) 4 CBDT about bogus issuance of refunds for assessment Years 2007-08 and 2008-09.

It was alleged that Tanaji Mandal Adhikari, while working as a Senior Tax Assistant had access to RSA Tokens and login credentials of his supervisory authorities. He allegedly orchestrated the fraud in connivance with others. The accused fraudulently generating TDS refunds exceeding Rs 263 crore and transferred it in various bank accounts including the bank account of SB Enterprises (a proprietary concern to Bhushan Anant Patil).

The CBI has also filed charge sheet against Adhikari, Patil, Rajesh Shantaram Shetty and others for committing offences punishable under Sections 7&13(2) r/w 13(1)(a) of PC Acr and Section 66 of IT Act.

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During investigation, the ED had learnt that between 15.11.2019 and 04.11.2020, as many as 12 fraudulent TDS refunds were generated by Tanaji Mandal Adhikari of Rs 263,95,31,870 which were fraudulently credited in the account of SB Enterprises.

"These Proceeds of Crime (PoC) were subsequently transferred into the bank accounts of Bhushan Anant Patil and other related persons and entities and also in Shell companies.

Investigation revealed that one Kriti Verma had sold one such property in Gurugram, Haryana, which was acquired in the 2021 out of POC of Rs 1.02 crore and received sale proceeds in her bank accounts. Immediately, search operations were conducted and the entire sale proceeds amount of Rs 1.18 crore were identified in her bank accounts and freezed," the official said.

Immovable properties in the form of lands at Lonavala, Khandala, Karjat, Pune and Udupi areas, flats at Panvel and Mumbai areas and movable assets in the form 3 luxury cars (BMW X7, Mercedes GLS400d, Audi Q7) have been acquired out of the proceeds of crime by the accused, the ED said.

On identification of these assets, Provisional Attachment Order under PMLA was issued attaching 32 assets totalling to Rs 69,65,99,720.

Of the total PoC of Rs 263 crore, assets of Rs 166 crore have been seized.

Further investigation in the matter is on.

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