The Enforcement Directorate (ED) has made another arrest in connection with a significant income tax refund fraud case amounting to Rs 263 crore in Mumbai. Purshottam Chavan was apprehended by the Mumbai Zonal office of the ED on Monday under the provisions of the Prevention of Money Laundering Act (2002). He is alleged to have been involved in the possession of part of the proceeds of the crime.
Chavan was remanded to ED custody until May 27 for further questioning and investigation.
Previously, the ED had arrested four individuals, namely Tanaji Mandal Adhikari, Bhushan Patil, and Rajesh Shetty, in connection with the same case.
The investigation by the ED was initiated based on an FIR filed by the Central Bureau of Investigation (CBI) against Tanaji Mandal Adhikari and others. They were accused of fraudulently generating and issuing tax deduction at source (TDS) refunds amounting to Rs. 263.95 crore from the Income Tax Department.
During the ED's investigation, it was revealed that Rajesh Brijlal Batreja and Purshottam Chavan were in contact and exchanged incriminating messages related to hawala transactions and the diversion of proceeds of the crime regularly.
A search operation was conducted at Purshottam Chavan's residence on May 19, leading to the seizure of several property documents, foreign currency, and mobile phones. The ED also alleged that Chavan attempted to destroy evidence related to the case.
Assets worth Rs 168 crore have been seized in connection with this case thus far, and the investigation is ongoing to uncover further details and individuals involved.
