ED attaches assets worth Rs 14.02 cr in Rs 263 cr Income Tax refund fraud case

Part of the concealed PoC has further been invested in the two Indian companies based in Mumbai and Gurugram under the guise of share investment by making cross-border remittances

The Directorate of Enforcement (ED) Mumbai has provisionally attached assets worth Rs 14.02 crore of five accused under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) in the case of an Income Tax Refund fraud of Rs. 263 crore.

This includes one flat in Mumbai of Purushottam Chavan, land parcels in Lonavala and Khandala of Rajesh Batreja, balance in Anirudh Gandhi's company bank A/c, insurance policies of accused Rajesh Shetty and Bhushan Anant Patil and fixed deposits totalling to Rs. 14.02 crore, the ED said in a release on Friday.

According to officials, ED initiated an investigation on the basis of an FIR registered by CBI under various sections of the IPC, 1860 and of Prevention of Corruption Act, 1988 against Tanaji Mandal Adhikari and others for fraudulently generating and issuance of TDS refunds from the Income Tax Department to the tune of Rs. 263.95 Crore.

The ED investigation revealed that Rajesh Brijlal Batreja helped Tanaji Mandal Adhikari and others in diverting Proceeds of Crime (PoC) of Rs. 55.50 crore outside India with the help of Anirudh Gandhi. After the diversion of PoC, Rajesh Brijlal Batreja with the help of other persons in Dubai, concealed the PoC outside India.

Part of the concealed PoC has further been invested in the two Indian companies based in Mumbai and Gurugram under the guise of share investment by making cross-border remittances. Initially, Rajesh Batreja voluntarily repatriated a small part of the PoC totalling to around Rs. 1.70 crore. Later, instead of bringing back the remaining PoC, Rajesh Batreja in connivance with Purushottam Chavan, diverted and diluted the PoC. They have also concealed the PoC in India and outside India in close association with persons based in Dubai.

Earlier, Tanaji Mandal Adhikari, Bhushan Anant Patil, Rajesh Shantaram Shetty, Rajesh Brijlal Batreja and Purushottam Chavan were arrested and presently, all five accused are under judicial custody. A prosecution complaint has also been filed on September 11, 2023, against Tanaji Mandal Adhikari and 10 others, cognizance of which has also been taken by the Special (PMLA) Court. Including this attachment, the total seized/attached of immovable/movable properties in this case is around Rs. 182 crore.

Further investigation is under progress.

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