CA in Trouble: ED Seizes Rs. 6.8 Cr Assets in ERDC Trust Fraud Case

The Enforcement Directorate (ED) has taken over properties of Rs. 6.8 crore, which belongs to chartered accountant Tehmul Sethna. This action was taken by the ED’s Ahmedabad office during an ongoing investigation under a law that deals with money made through illegal activities. These attached properties include a bungalow and two open plots, all of them located in Ahmedabad.

Tehmul Sethna became well known during the demonetisation period as he was the CA of Mahesh Shah, who had said he had income that was not reported to the government of Rs. 13,860 crore. So, Sethna is now in trouble in connection with a case related to the trust he was managing, called as Environment Research and Development Centre (ERDC). He was imposed with some charges under the Prevention of Money Laundering Act (PMLA), 2002. 

According to the ED, Sethna was handling all the monetary matters of the ERDC trust. CA is accused of withdrawing Rs. 6.85 crore from the trust’s bank account without any permission, while he was managing the affairs of the ERDC trust. These withdrawals were done using fake signatures of the people who managed the trust, which points to serious wrongdoing.

The Ed also discovered that the money taken out was moved through many people and companies. This was done to hide where the money really came from and to make it look legal. This type of activity is an example of turning illegal money into legal-looking money. A police complaint has already been filed at the Navrangpura police station for cheating, using fake documents, and planning these actions together.

The Ed’s decision to attach his properties aims to catch and stop people from using illegally earned money. This case also highlights the need to monitor professionals like chartered accountants. They manage large sums of money and can misuse their authority. The Ed’s decision to attach his property goals to catch and stop people from using money they earned illegally. This case also shows the need to monitor professionals like chartered accountants. They handle large sums of money and can misuse their position.