By Trend News Line 2024-05-19 20:28:08.
Money Laundering Case: Arrest Made in Connection to Rs 263 Crore Income Tax Refund Fraud
In a recent development, the Enforcement Directorate (ED) has arrested an individual in connection to a money laundering case linked to a massive Rs 263 crore Income Tax Refund fraud. The accused, identified as Rajesh Batreja, was reportedly involved in diverting Rs 55.5 crore proceeds of crime (PoC) outside the country and round-tripping a portion of it to two entities in India under the guise of investment from Dubai.
Previous Arrests and Investigation
Prior to Batreja’s arrest, the ED had apprehended former income tax inspector Tanaji Mandal Adhikari and businessmen Bhushan Patil and Rajesh Shetty, who are currently in judicial custody. The ED launched the investigation based on an FIR filed by the CBI against Adhikari and others for fraudulently generating and issuing tax deducted at source (TDS) claims amounting to Rs. 263.95 crore.
Allegations Against Batreja
According to the ED, Batreja allegedly aided Adhikari in diverting PoC of Rs. 55.50 crore into three shell companies to convert the funds into cash for transfer outside India through hawala channels. Batreja was also accused of assisting Adhikari in concealing the proceeds of crime and facilitating the placement and layering of the siphoned-off PoC by establishing firms with the help of a local individual in Dubai to present the funds as legitimate.
Additional Investments and Seizures
The investigation further revealed that Batreja had invested a portion of the diverted funds in two Indian companies by making cross-border remittances under the guise of share investments. Last week, the ED conducted searches at the premises of the two companies and seized digital devices for examination.
Arrest and Court Proceedings
Batreja was taken into custody by the ED on May 16 and was presented before a special PMLA court in Mumbai, which remanded him to custody until May 22. The agency confirmed that the investigation is still ongoing, with more details expected to emerge in the coming days.
Conclusion
The arrest of Rajesh Batreja in connection to the money laundering case associated with the Rs 263 crore Income Tax Refund fraud highlights the ED’s efforts to crack down on financial crimes and illicit activities. With ongoing investigations and further developments expected, the case serves as a reminder of the importance of combating fraud and money laundering to uphold financial integrity..
– ED arrests businessman in fake tax refund scam case
– ED arrests businessman in crore fake tax refund scam case.