In Mumbai, a court specializing in cases under the Prevention of Money Laundering Act (PMLA) mandated a 14-day judicial custody for an individual implicated in a Rs 263-crore income tax refund fraud-related money laundering investigation. According to the Enforcement Directorate (ED), there is substantial evidence suggesting Purshottam Chavan’s culpability in the offence.
The ED highlighted Chavan’s pivotal involvement in the intricate process of laundering illicit proceeds. Chavan was apprehended on May 20, following a raid on his Mumbai residence. Subsequently, he was presented before PMLA judge MG Deshpande, who approved the custodial remand requested by the investigating agency.
The court was informed by the ED that Chavan had obliterated critical evidence, impeding the trace of fund utilization. During interrogation, Chavan allegedly withheld specifics regarding the actual amounts received, their disbursement methods, and further utilization. Moreover, the ED noted Chavan’s lack of transparency concerning property documents found at his home, asserting that his detention was crucial to prevent disruption of the ongoing probe.
The investigation revolves around fraudulent TDS (tax deducted at source) refunds amounting to Rs 263.95 crore. The genesis of this money laundering case by the ED stems from an initial investigation by the Central Bureau of Investigation (CBI). Prior to Chavan’s arrest, the ED had already detained several individuals including the main accused, former senior tax assistant Tanaji Mandal Adhikari, Bhushan Patil, Rajesh Shetty, and Rajesh Brijlal Batreja.
Communications between Batreja and Chavan revealed incriminating evidence related to hawala operations and the misdirection of illicit proceeds. Thus far, assets worth Rs 168 crore associated with various accused parties have been confiscated. In September 2023, the ED filed a charge sheet against Adhikari and ten others involved in this extensive fraud.
This case underscores the complexity and scale of financial crimes and the relentless efforts of investigative agencies in unearthing and prosecuting such offences.
