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MP’s Dhaba, accounts worth crores: Income tax notice of 46 crores created a stir, the cook approached the police

Income Tax Notice Shocks Madhya Pradesh Cook: A Case of Mistaken Identity?

Ravinder Singh Chauhan, a 30-year-old cook at a dhaba in Madhya Pradesh’s Bhind district, found himself in an extraordinary predicament when he received an alarming income tax notice for a staggering Rs 46 crore. “I work at a dhaba. My account doesn’t see even Rs 3 lakh in transactions throughout the year,” Chauhan expressed in disbelief.

A senior police officer confirmed receipt of Chauhan’s complaint, stating, “We got the complaint and are deciding on the next course of action.” Chauhan’s lawyer, Advocate Pradhuman Singh Bhadoriya, highlighted that this unusual situation stems from Chauhan’s past employment as a mess helper at a toll plaza on the Gwalior bypass in November 2019. There, he was instructed by his supervisor to provide his bank details and Aadhaar card for his provident fund account.

“I had to leave school after sixth grade because of our family’s financial condition,” Chauhan explained when addressing why he felt compelled to share his banking information. After eight months of waiting for his provident fund money and other incentives, he was unable to close the bank account. Tragically, his employment ended when the toll plaza contract expired in 2023, forcing him to seek work in Pune.

The saga began when the first income tax notice landed at Chauhan’s home on April 9, 2025. Written in English, the notice was unintelligible to him and his wife, prompting them to ignore it. When a second notice arrived on July 25, Chauhan decided to investigate the matter further. “I came back from Pune to find out what it was about,” he recounted.

The Income Tax department’s Gwalior branch stated in its notice that “income chargeable to tax has escaped assessment to the extent of Rs 46,18,32,916 for the F.Y 2020-21 relevant to the A.Y: 2021-22. Therefore, the case of the assessee is found to be a fit case for issuance of notice.”

After collaborating with his lawyer for over a month, Chauhan pieced together what might have occurred. “The account opened seven years ago had been continuously used for massive financial transactions,” he alleged. “Even after I asked for it to be closed, someone continued using it.”

Chauhan has since filed a police complaint regarding the matter, but has faced further setbacks. “They’re telling me the crime happened in Delhi, so I should file one there,” he remarked in frustration. This case highlights the complexities and potential pitfalls of financial documentation and identity management, leaving the question of accountability hanging in the air for Chauhan.

Court Orders Police to Compensate Rs 2.5 Lakh for Illegal Arrest

High Court Orders Compensation for Man Arrested Under Repealed Law

CHHATRAPATI SAMBHAJINAGAR: The Aurangabad bench of the Bombay High Court has ruled in favor of a man, Ashwinkumar Sanap (43), who was arrested under a law that has since been repealed. The court deemed the arrest “illegal” and a violation of Sanap’s rights to personal liberty, ordering both the complainant policeman and the investigating officer to pay compensation.

On October 23, the court ordered police inspector Narendra Padalkar to pay Rs 2 lakh and constable Pandit Tare to pay Rs 50,000 to the petitioner. Sanap’s legal representative, Bhushan Dhawale, revealed that Sanap was arrested on August 6 under Sections 66A and 66B of the Information Technology (IT) Act, despite Section 66A being declared unconstitutional in the landmark 2015 judgment of Shreya Singhal vs. Union of India. The FIR, which was filed on June 27, 2024, also included Section 500 of the Indian Penal Code (IPC), a non-cognizable offense that requires a direct complaint to a magistrate.

Dhawale explained that the police realized the inapplicability of Sections 66A and 66B only after Sanap was arrested and presented to the magistrate. They subsequently added Section 67A of the IT Act.

The High Court division bench, which includes Justice Vibha Kankanwadi and Justice S.G. Chapalgaonkar, remarked that “this arrest was made at midnight, in total violation of the personal liberty enshrined under the Constitution of India.” They criticized Padalkar, stating it is “beyond imagination” that an investigating officer would not properly consider the relevant sections of the law prior to making an arrest.

The court described the realization of having invoked the wrong sections post-arrest as akin to a “suicide attempt” for the investigating officer, emphasizing that law enforcement must follow the law both before and during an arrest.

Moreover, the bench pointed out that the magistrate also failed to exercise due diligence when Sanap was presented for custody. Citing landmark decisions from the Supreme Court in Arnesh Kumar vs. State of Bihar and Satender Kumar Antil vs. CBI, the High Court noted that both magistrates and investigating officers are obligated to assess the justification for an arrest before granting custody.

Highlighting issues of procedural negligence, the court stated that Sanap had been held despite the fact that “Section 67-A of the IT Act was not at all attracted, taking into consideration the facts of the case.” The division bench further noted that Tare had filed the FIR with “mala fide intention” stemming from a family dispute, as Sanap had separated from Tare’s sister and was alleged to have sent a defamatory WhatsApp message to a relative.

The court observed that WhatsApp messages are end-to-end encrypted, meaning the sender cannot rightfully assume a private message will be public unless forwarded by the recipient.

Addressing concerns regarding judicial integrity, the High Court expressed disapproval of such practices, cautioning lower courts against “passing mechanical orders.” The court ordered a copy of the judgment to be sent to the superintendent of police in Hingoli for review and possible action in accordance with the Supreme Court’s guidelines in the Arnesh Kumar case.

Police Apprehend Gang of Fraudsters Dealing in Counterfeit Bills Worth ₹116 Crore

Police Bust Gang of Fraudsters Dealing in Counterfeit Bills

Police apprehended five individuals involved in a counterfeit billing operation that resulted in a ₹116 crore loss for the GST department. The accused set up fake firms using forged documents and obtained GST refunds fraudulently. The cyber cell played a crucial role in uncovering the racket, and investigations are ongoing to identify and charge others involved. The accused are facing charges under various sections of the Indian Penal Code and the Information Technology Act.

Police busted a gang of fraudsters using counterfeit bills that dealt losses to the tune of ₹116 crore for the GST department, arresting five accused who had been running the operation since 2017.

The investigation revealed that the accused had utilised six different firms to issue fake bills. The arrested accused have been identified as Hardeep Singh from Vishwakarma Colony of Miller Gunj, Sukhdev Singh from Harkrishan Nagar of Miller Gunj, Ranjeet Singh Babber from Gill Road, Miller Gunj, Sumit Kumar from Labour Colony and Harpal Singh.

Police commissionerate cyber cell played a crucial role in busting the racket. The crackdown was initiated following a complaint lodged by Amandeep Singh of Shimla Colony, Jodhewal, who had flagged a notice said to be issued by the GST department. It was later discovered that the accused had fraudulently used Amandeep’s Aadhaar card and altered his photo to set up a fake firm, through which they obtained GST refunds from New Delhi.

Sharing details, cyber cell in-charge inspector Jatinder Singh said a comprehensive investigation exposed the gang’s operation and bogus billing activities. The accused had forged documents of unsuspecting individuals to create fake firms and issue counterfeit bills to avail GST refunds.

Police have identified six fraudulent firms used by the accused, leading to the significant loss incurred by the GST department. Efforts are underway to apprehend more individuals involved in the scam, with plans to charge those who knowingly accepted the fake bills, the inspector added.

A case under sections 419 (cheating by personation), 420 (cheating), 120-B (Criminal intimidation), 465 (forgery), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document) of the Indian Penal Code, section 66C and 66 D of Information Technology (IT) act has been registered against them.

Four Arrested for Kidnapping Chartered Accountant in Multi-Crore Scam Recovery Attempt

Four victims of multi-crore scam abduct CA to recover lost money: Police arrest four individuals who kidnapped a chartered accountant in an attempt to recover money lost in a Ponzi scheme. The accountant had convinced acquaintances and relatives to invest in the fraudulent company. The kidnappers demanded a ransom of ₹5 crore ($710,000). Two of the accused were found with the victim after a five-day search, while the other two were apprehended separately. The four are now in police custody.

Strap: A police team arrests quartet after five days of search and rescues CA, who was attached to the fraud company

It was like a copy of the script from a highly rated crime show on television. From staking out their target’s house for days to keeping tabs on his daily schedule for a month, they did pull off an abduction and left no trail for police to swoop down on them.

However, the long arm of the law eventually caught up with them.

Last Wednesday, four white-collar job holders, who, in their last-ditch effort to recover the hard-earned money they had lost in a Ponzi scheme two years ago, kidnapped the only person they got their hands on – the charted accountant (CA), outside his office in Chandivali.

According to the police, Bhushan Arora was associated with the firm, the alleged perpetrator of the fraud. The quartet made three ransom calls to his wife Megha and demanded ₹5 crore in ransom.

“During investigation, we got to know that Arora had convinced many of his acquaintances and relatives into investing in Divine Power Group. All of them faced big losses in the stock market due to this. Even the person who made the ransom calls had told the family that he and his accomplices had lost money because of Arora,” said Datta Nalawade, deputy commissioner of police, zone 10.

Tag: Police