The Enforcement Directorate ( ED ) made another arrest in connection with a massive income tax refund fraud and money laundering case amounting to Rs 263 crore. The person arrested, was apprehended on May 20 during a raid on his premises in Mumbai.
The issue here is that the tax office is accused of handing out fake refunds, adding up to a whopping Rs 263.95 crore. The ED got involved because the Central Bureau of Investigation ( CBI ) is looking into money laundering. They think the newly arrested person attempted to destroy important evidence that could lead them to the crime.
During the raid, ED officials seized various items from his residence, including property documents, foreign currency, and mobile phones. This arrest marks the fifth in the case. Earlier, the ED arrested Rajesh Brijlal Batreja, an Indian Businessman on May 16, 2024, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
“The ED initiated an investigation based on FIR registered by CBI under various sections of IPC, 1860 and Prevention of Corruption Act, 1986 against Mr. Adhikari and others for fraudulently generating and issuing TDS refunds from Income Tax Department to the tune of ₹263.95 crore. During the investigation it was revealed that Mr. Batreja helped Mr. Adhikari in diverting PoC of ₹55.50 crore into three shell companies in order to convert the same into cash for sending it outside India by hawala channel,” an ED official informed.
The investigation found that Mr. Batreja invested some of the diverted funds in two Indian companies in Mumbai and Gurugram, disguising it as share investments through cross-border remittances. Consequently, he was arrested for his role in managing the ill-gotten gains. He appeared before the Special Court ( PMLA ) in Mumbai on May 17, 2024. The court granted custody of Mr. Batreja to the ED until May 22, 2024.
The ED claimed that arrested Batreja and newly arrested were in regular contact, exchanging messages related to illicit transactions and the diversion of proceeds from criminal activities. As of now, assets worth Rs 168 crore belonging to various accused individuals have been attached by the ED.
In September 2023, the ED filed a charge sheet against Adhikari and ten others involved in the case, shedding light on the complexity and magnitude of the ongoing investigation into this significant financial fraud and money laundering operation.
According to reports, the ED has secured his custody until May 27 for further investigation.
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