Purushottam Chavan, husband of an IPS officer, has been implicated in a Rs 263 crore Income Tax refund fraud, according to the ED’s supplementary charge sheet. The investigation reveals Chavan and others laundered Rs 11 crore both within India and abroad.
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MUMBAI: Purushottam Chavan, the husband of an IPS officer, has been implicated in a major money laundering case, as revealed by a supplementary charge sheet filed by the Enforcement Directorate (ED) in a special court. The case revolves around the alleged Income Tax refund fraud amounting to Rs 263 crore.
The ED’s investigation points to Chavan and other accused individuals laundering money both within India and internationally to the tune of Rs 11 crore.
According to the ED, the prime accused in the case is former Income Tax officer Tanaji Adhikari. Adhikari is accused of living a lavish lifestyle and acquiring numerous assets across India using the proceeds of crime (POC). The fraudulent scheme allegedly involved the generation and issuance of TDS (tax deducted at source) refunds from the Income-tax department, amounting to Rs 263.95 crore.
Chavan, who was arrested in May, is currently under judicial custody. The other arrested individuals include former Income Tax Officer Tanaji Mandal Adhikari, Bhushan Patil, Rajesh Shetty, and Rajesh Batreja. The recent developments in the case saw the ED filing a supplementary charge sheet against six people, including Purushottam Chavan, in the Prevention of Money Laundering Act (PMLA) court in Mumbai.
On Monday, Special Judge A C Daga, who presides over cases under the PMLA, took cognisance of the charge sheet. The judge stated that prima facie, all the accused “appear to be involved in the process of money laundering.” This statement highlights the severity of the allegations and the extent of the investigation carried out by the ED.
The ED’s charge sheet details the intricate network of money laundering operations conducted by the accused. It sheds light on how they manipulated the system to generate fraudulent TDS refunds and subsequently laundered the proceeds. The charge sheet provides a comprehensive account of the financial transactions and asset acquisitions made by the accused, painting a clear picture of their illicit activities.
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The involvement of Purushottam Chavan, due to his association with an IPS officer, adds a layer of complexity to the case. It underscores the ED’s commitment to holding all individuals accountable, regardless of their connections or status. The charge sheet is a significant step forward in the ongoing investigation, aiming to bring justice to those involved in the massive fraud.
the court has observed that the accused in a high-profile money laundering case are deeply implicated in generating and handling proceeds from criminal activities. The charges against them reveal their involvement in a series of illicit financial transactions. According to the court, all the accused “are involved in generating proceeds from criminal activities related to the predicate offense.”
The Enforcement Directorate (ED) investigation has brought to light that one of the key accused, Chavan, was colluding with Rajesh Batreja and others to manage and divert the illicit funds both within India and abroad. The agency’s findings indicate that from August 2023 to November 2023, Batreja and Chavan handled proceeds of crime amounting to approximately Rs 11 crore.
The ED’s probe has detailed how Batreja repatriated the tainted money from Dubai via the Hawala network. During this period, Chavan made use of international SIM cards from the UK and UAE, and was noted for his frequent international travels, which coincided with the commission of the offence. This international movement was a crucial part of the strategy to manage and conceal the proceeds of the crime.
From November 2019 to March 2021, another accused, Adhikari, utilized the proceeds of crime (POC) to finance a luxurious lifestyle and to acquire assets across various locations in India. The probe agency highlighted that Adhikari was assisted by other accused in these transactions.
One of the sophisticated crime strategies employed by the accused involved converting the proceeds of crime into cash. This method was chosen to obscure the money trail, making it difficult for law enforcement agencies to trace. Once converted into cash, the funds were then siphoned off to Dubai through the Hawala channel, ensuring the proceeds were well-hidden from legal scrutiny.
