IT Refund Fraud Case ED Arrest Indian Businessman with ₹263Crs

In the case of the income tax refund fraud of Rs 263 crores, the Enforcement Directorate arrested an Indian businessman.

On May 16, 2024, the ED, Mumbai Zonal Office arrested Rajesh Brijlal Batreja under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

An investigation based on FIR registered by CBI under various sections of IPC, 1860 and Prevention of Corruption Act, 1986 has been initiated by the ED against Mr Adhikari and others for fraudulently generating and issuing TDS refunds from the Income Tax Department to the tune of ₹263.95 crore. In the investigation, it was revealed that Mr Batreja helped Mr Adhikari in diverting PoC of ₹55.50 crore into three shell companies to convert the same into cash for sending it outside India by hawala channel, as per the ED official.

Investigation shows that Mr Batreja has invested a portion of the quoted siphoned-off PoC in the two Indian companies based in Mumbai and Gurugram under the impression of share investment by making cross-border remittances.

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As per the investigation, it shows that Mr Batreja invested a portion of the cited siphoned-off PoC in the two Indian companies and therefore he was arrested for his engagement in dealing with proceeds of crime and was produced before the Special Court (PMLA), Mumbai on May 17, 2024. Before the ED the court has granted custody of Mr. Batreja till May 22, 2024.

Before that in this matter, the immovable and movable properties to the tune of Rs 168 crore have been fetched, seized, and attached till now.