₹263 crore TDS refund fraud: ED records witness statements

Enforcement Directorate intensifies probe into ₹263 crore TDS refund fraud case, with recent arrests and witness statements revealing a complex web of deceit.

Mumbai: The Enforcement Directorate (ED) has intensified its probe into the ₹263-crore TDS refund fraud case, recording witness statements from two police constables. These constables alleged that they had been instructed by Purshottam Chavan, the fifth arrested accused, to collect cash bags from a case accused.

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Chavan, who was arrested by the agency last Monday, faces accusations of possessing, concealing, and diverting proceeds of crime in the case. The constables, deployed with Chavan’s wife, an IPS officer, claimed they had collected cash bags from businessman Rajesh Batreja as directed by Chavan.

Apart from Chavan, the agency previously arrested four individuals in the case — former I-T official Tanaji Adhikari and businessmen Bhushan Patil, Rajesh Shetty, and Batreja. Chavan’s name came to light following the arrest of Batreja, revealing their alleged regular contact and exchange of messages related to the diversion of proceeds of crime and hawala transactions.

During searches at Chavan’s Mumbai residence, the ED unearthed documents related to properties and Transfer of Development Rights (TDR). Documents related to TDR and assets in the names of different individuals were found in Chavan’s possession, prompting the agency to investigate further.

Chavan stands accused of receiving crores of rupees in exchange for influencing the probe and attempting to destroy evidence. He was arrested for his alleged involvement in dealing with the proceeds of crime on May 20.

Batreja, on the other hand, is accused of aiding in diverting a portion of the crime proceeds abroad and concealing them in entities located in Mumbai and Gurugram. The ED’s investigation stems from a case registered by the Central Bureau of Investigation (CBI), which uncovered fraudulent activities in the generation and issuance of 12 TDS refunds between November 2019 and November 2020, amounting to ₹263.95 crore.

The ED’s efforts have resulted in the seizure and attachment of properties worth ₹168 crore. Additionally, the agency has submitted its chargesheet against Adhikari and 10 others in a Mumbai special court, which has taken cognisance of the case.

The unfolding of events in this complex financial fraud case underscores the meticulous work of investigative agencies in unraveling the intricate web of deceit and corruption. As the investigation progresses, the ED remains committed to bringing all perpetrators of financial crimes to justice, ensuring accountability and restoring faith in the integrity of financial systems.