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“The Enforcement Directorate (ED) has made its fifth arrest in a ₹263 crore income tax refund fraud linked money-laundering case investigation,” the Central agency said.
“Purshottam Chavan was arrested on May 20, a day after the agency raided his premises in Mumbai. Chavan has been sent to ED custody till May 27,” the agency said in a statement issued on May 22.
The investigation pertains to alleged fraudulent generation and issuance of TDS (tax deducted at source) refunds from the Income-tax Department to the tune of ₹263.95 crore. A CBI FIR is the basis of the ED’s money-laundering case.
“Chavan tried to “hamper” the investigation by “destroying” evidence which could further lead to tracing of the proceeds of crime in this case,” the ED alleged. It said the agency officials seized a number of property documents, foreign currency and mobile phones when they raided Chavan’s house.
The ED has earlier arrested the main accused and a former senior tax assistant Tanaji Mandal Adhikari, Bhushan Patil, Rajesh Shetty and Rajesh Brijlal Batreja in this case. “Batreja and Chavan were “in touch regularly and shared incriminating messages related to hawala transactions and diversion of the proceeds of crime,” the ED alleged.
Assets worth ₹168 crore of various accused have been attached till now and a charge sheet was filed in September 2023 by the ED against Adhikari and ten others.