In a major development in a high-profile money laundering case, a special court operating under the Prevention of Money Laundering Act (PMLA) has ordered Purshottam Chavan to be held in judicial custody for 14 days. This decision comes in response to his alleged involvement in a substantial Rs 263 crore income tax refund fraud. The Enforcement Directorate (ED), leading the investigation, has emphasized Chavan’s active participation and crucial role in laundering the proceeds of this crime.
Despite being subjected to custodial interrogation, Chavan reportedly withheld information regarding the receipt, mode, and further utilization of the funds. Furthermore, he failed to disclose essential facts about property documents recovered from his residence, which led to the necessity of judicial custody to prevent any hindrance to the ongoing investigation.
The case centers on the fraudulent generation and issuance of Tax Deducted at Source (TDS) refunds by the Income-tax department, totaling Rs 263.95 crore. This case, initially brought to light by the Central Bureau of Investigation (CBI), forms the basis for the ED’s money laundering investigation.
Earlier, the ED had apprehended key figures in this case, including the main accused, former senior tax assistant Tanaji Mandal Adhikari, along with Bhushan Patil, Rajesh Shetty, and Rajesh Brijlal Batreja. Notably, Batreja and Chavan were found to have exchanged incriminating messages regarding hawala transactions and the diversion of crime proceeds.
As of now, assets worth Rs 168 crore belonging to various accused individuals have been attached as part of this investigation. In September 2023, the ED filed a charge sheet against Adhikari and ten others, marking a significant milestone in this high-stakes money laundering case.