The Enforcement Directorate (ED) has arrested Indian businessman Rajesh Brijlal Batreja in connection with an income tax refund fraud amounting to Rs263 crores. Batreja was apprehended on May 16, 2024, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation began following an FIR registered by the CBI against Mr. Adhikari and others for fraudulently generating and issuing TDS refunds from the Income Tax Department. It was revealed that Batreja assisted in diverting Rs55.50 crore of proceeds of crime (PoC) into three shell companies to convert the funds into cash, which was then sent outside India through hawala channels.
Further inquiries indicated that Batreja invested part of the siphoned funds in two Indian companies based in Mumbai and Gurugram, disguised as share investments through cross-border remittances. Consequently, he was arrested for his involvement in dealing with the proceeds of crime and was produced before the Special Court (PMLA) in Mumbai on May 17, 2024.