Rs 263 crore I-T refund ‘fraud’: Proceeds of crime siphoned between India and Dubai through hawala channels

“…there are sufficient grounds to proceed against all accused for themselves and their entities/companies…,” Daga said. Apart from Chavan, Rajesh Batreja, Anirudh Gandhi and three companies linked to them, A G Enterprises, Dwalax Enterprises, Universal Marketing and Advisory Services are also accused in the case.

The ED claimed that Chavan and Batreja have dealt with proceeds of crime to the tune of Rs 11 crore and that Chavan was using international SIM cards of UAE and UK, while also frequenting various countries at the time of the alleged money-laundering activities. The ED also alleged that Chavan set up a company in Dubai and that money was withdrawn from a bank account of Batreja, which ED claimed, showed that there was a motive to divert and conceal proceeds of crime.

“It is clearly evident that Purushottam Chavan has been dealing with proceeds of crime siphoned off outside India and also arranging investments from other parties for companies in India in which funds have been transferred under the guise of share investment,” the ED chargesheet states.

The ED has cited 29 witnesses, including those of two sepoys of the Mumbai Police, who were posted in the house of Chavan and his IPS officer wife in 2021 and 2023. One of the sepoys has told the ED that he knew Batreja, who often visited the house. The sepoy also said that Chavan had shared Batreja’s number and had handed over bags and cartons to him.

The ED had claimed that main accused Tanaji Adhikari, a former senior tax assistant, was involved in fraudulently generating and issuing Tax Deducted at Source (TDS) refunds from the Income Tax Department to the tune of Rs 263.95 crore. The accused had denied the allegations.