ED arrests suspect in ₹263 crore TDS refund fraud case | Mumbai news - Hindustan Times

ED arrests suspect in 263 crore TDS refund fraud case

May 20, 2024 06:22 AM IST

ED Mumbai arrests Rajesh Batreja in money-laundering probe related to ₹263 crore TDS refund fraud. Allegedly diverted ₹55.4 crore abroad, concealed in Indian entities.

Mumbai: The Enforcement Directorate (ED)’s Mumbai zonal unit has arrested an individual as part of its money-laundering probe related to a case involving the allegedly fraudulent withdrawal of TDS refunds worth 263 crore from the Income Tax Department. The arrested person, Rajesh Batreja, is accused of being instrumental in diverting a part of the proceeds of crime from the case, amounting to 55.4 crore, abroad. Subsequently, he allegedly concealed a portion of these funds within two entities in India by presenting them as investments from Dubai, United Arab Emirates.

HT Image
HT Image

The agency previously arrested three individuals in the case, including a former Income Tax official named Tanaji Mandal Adhikari, as well as businessmen Bhushan Patil and Rajesh Shetty, who are currently in judicial custody. According to an ED source, “Batreja played a key role in diverting a portion of the proceeds of crime, amounting to 55.5 crore, outside India, and subsequently, he engaged in round-tripping part of these proceeds in two entities within India, disguising them as investments from Dubai.”

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

The ED initiated its investigation based on a case filed by the Central Bureau of Investigation (CBI) under sections of the Indian Penal Code and the Prevention of Corruption Act against Adhikari and others for the purported fraudulent generation and issuance of Tax Deducted at Source (TDS) refunds from the Income Tax Department totalling 263.95 crore. During its probe, the ED found that Batreja allegedly aided Adhikari in diverting 55.5 crore from the proceeds of the crime into three fictitious firms to convert it into cash, intending to transfer it abroad from India through illicit hawala channels.

After the diversion, Batreja allegedly aided Adhikari in concealing the proceeds of the crime by placing them in firms and incorporating them with the assistance of a local individual in Dubai, presenting them as untainted. Additionally, Batreja is accused of further investing a portion of the embezzled proceeds of crime in two Indian companies located in Mumbai and Gurugram, Haryana, disguising them as share investments through cross-border remittances, as per the agency’s allegations.

The agency conducted searches on May 16 at the official premises of the two Indian firms mentioned and seized Batreja’s digital device. Batreja was arrested on May 16 for his alleged involvement in dealing with the proceeds of crime in the case, and a city court remanded him to the agency’s custody until May 22.

So far, the ED has seized/attached immovable/movable properties worth 168 crore. The agency had previously submitted its chargesheet against Adhikari and 10 others in a Mumbai special court, which took cognizance of it.

Get World Cup ready with Crickit! From live scores to match stats, catch all the action here. Explore now!

Stay updated with all the Breaking News and Latest News from Mumbai. Click here for comprehensive coverage of top Cities including Bengaluru, Delhi, Hyderabad, and more across India along with Stay informed on the latest happenings in World News.
Share this article
Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Sunday, June 23, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On