Rajesh Brijlal Batreja Arrested by Mumbai Enforcement Directorate
The Enforcement Directorate (ED) of Mumbai Zonal Office made a significant arrest on May 16, 2024, as Rajesh Brijlal Batreja was apprehended under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. This action stems from his alleged involvement in an Income Tax Refund fraud case amounting to a staggering ₹263 crore.
According to ED officials, Mr. Batreja played a pivotal role in diverting a portion of the Proceeds of Crime (PoC) totaling ₹55.50 crore to overseas accounts and engaging in round-tripping part of these funds through two entities in India, purportedly as investments from Dubai. This development follows the arrest of three other individuals, Tanaji Mandal Adhikari, Bhushan Patil, and Rajesh Shetty, who are presently in judicial custody in connection to the same case.
The ED’s investigation was initiated based on an FIR filed by the Central Bureau of Investigation (CBI) under various sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1986, against Mr. Adhikari and others for fraudulently generating and issuing TDS refunds from the Income Tax Department, amounting to ₹263.95 crore. Subsequently, it was uncovered during the investigation that Mr. Batreja allegedly aided Mr. Adhikari in diverting PoC of ₹55.50 crore into three shell companies to convert the funds into cash for illicit transfer outside India via hawala channels.
Moreover, Mr. Batreja is implicated in assisting Mr. Adhikari in concealing the proceeds of crime, as well as in the placement and layering of the siphoned-off PoC by incorporating firms with the assistance of a local individual in Dubai to project the same as untainted. It was further disclosed that Mr. Batreja purportedly invested a portion of the siphoned-off PoC into two Indian companies situated in Mumbai and Gurugram under the guise of share investment through cross-border remittances.
The recent developments also included a search operation conducted on May 16, 2024, at the office premises of the aforementioned Indian companies, during which digital devices were seized. Mr. Batreja was placed under arrest for his alleged involvement in dealing with proceeds of crime under the provisions of PMLA, 2002. Subsequently presented before the Special Court (PMLA) in Mumbai, he was granted custody to the ED till May 22, 2024.
This case has also seen the identification, seizure, and attachment of immovable and movable properties amounting to ₹168 crore to date. A Prosecution Complaint was filed on September 11, 2023, against Mr. Adhikari and 10 others, which has been taken into account by the Special (PMLA) Court. The ED official confirmed that further investigation is underway, underscoring the gravity of the situation and the complexity of the case.