ED Arrests Businessman in Rs.263 Crore Income Tax Refund Fraud

The Enforcement Directorate (ED), Mumbai Zonal Office, detained Rajesh Brijlal Batreja on May 16, 2024, under the Prevention of Money Laundering Act (PMLA), 2002, according to an ED Official statement issued late May 19 evening.

Mr Batreja has been arrested for alleged Rs.263 crore income tax refund fraud.

“Mr Batreja was instrumental in diverting part of Proceeds of Crime (PoC) of Rs.55.50 crores to foreign countries and round-tripping part of said PoC in two entities in India under the guise of investment from Dubai,” according to ED authorities.

Previously, three accused persons were arrested in this case: Tanaji Mandal Adhikari, Bhushan Patil, and Rajesh Shetty, who are currently in judicial custody.

“The ED launched an inquiry based on an FIR registered by the CBI under different sections of the IPC, 1860, and the Prevention of Corruption Act, 1986, against Mr Adhikari and others for illegally generating and issuing TDS refunds from the Income Tax Department totalling Rs.263.95 crore. During the inquiry, it was discovered that Mr. Batreja assisted Mr. Adhikari in diverting PoC of Rs.55.50 crore into three shell firms in order to convert it into cash and move it outside India via the hawala route,” an ED officer stated.

Following the diversion of PoC, Mr. Batreja supported Mr. Adhikari in concealing the proceeds of crime, as well as in the placement and layering of the siphoned-off PoC by creating enterprises with the help of a local person in Dubai to present the same as untainted.

The investigation also discovered that Mr. Batreja had deposited a portion of the siphoned-off PoC in two Indian companies situated in Mumbai and Gurugram under the guise of share investment through cross-border remittances.

“Search operation was carried out on May 16, 2024, at the office premise of said 2 Indian companies and the digital device was seized,” stated an ED Official.