₹264 cr fraudulent TDS refunds: ED attaches assets including Malabar Hill flat, lands in Khandala and Lonavala

The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹14.02 crore in its money-laundering investigation linked to an alleged fraudulent withdrawal of TDS refunds totalling ₹263.95 crore from the Income Tax (I-T) department

Mumbai: The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹14.02 crore in its money-laundering investigation linked to an alleged fraudulent withdrawal of TDS refunds totalling ₹263.95 crore from the Income Tax (I-T) department.

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The attached assets comprise a flat in Malabar Hill, land parcels in Lonavala and Khandala (Pune district), bank balances, insurance policies, and fixed deposits, estimated to be worth ₹14.02 crore. This action was taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The ED identified these assets during its investigation, linking them to the proceeds of crime in the case. The Malabar Hill flat belongs to Purushottam Chavan, a key accused and husband of a Maharashtra IPS officer, while the land plots in Khandala and Lonavala belong to co-accused businessman Rajesh Batreja. Additionally, the agency attached ₹68.89 lakh from a firm’s bank account belonging to suspect A. Gandhi, and insurance policies of two other accused, Rajesh Shetty and Bhushan Anant Patil.

Besides these, the ED also provisionally attached voluntarily repatriated proceeds of crime amounting to ₹1.7 crore through foreign inward remittances, and proceeds surrendered by relatives, friends, and associates of several accused persons. To date, the ED has seized/attached assets worth approximately ₹182 crore in this case.

The ED initiated its probe based on a CBI case against former I-T official Tanaji Adhikari and others, accused of fraudulently generating and issuing 12 TDS refunds amounting to ₹263.95 crore between November 15, 2019, and November 4, 2020.

Investigation revealed that Batreja allegedly facilitated the diversion of ₹55.5 crore outside India with Gandhi’s assistance. Subsequently, funds were allegedly concealed abroad with the involvement of individuals in Dubai. Part of these funds was purportedly invested in firms in Mumbai and Gurugram under the guise of share investments through cross-border remittances.

Initially, Batreja repatriated a small portion of the proceeds voluntarily. However, instead of repatriating the remainder, he allegedly colluded with Chavan to divert and conceal the funds. The accused duo also allegedly concealed a portion of the proceeds within India and abroad, with links to individuals in Dubai.

Previously, the ED had arrested Adhikari, Patil, Shetty, Batreja, and Chavan, all of whom are currently in judicial custody. The agency filed a chargesheet against Adhikari and 10 others on September 11, 2023, which was subsequently acknowledged by a Mumbai special (PMLA) court. Chavan, arrested in May, faces charges related to possession, concealment, and diversion of crime proceeds, following his association with Batreja, according to sources familiar with the investigation.