In a significant breakthrough, the Enforcement Directorate (ED) arrested Purshottam Chavan in connection with a massive Rs263.95 crore TDS scam. This is the fifth arrest in the ongoing money laundering investigation involving fraudulent withdrawals of Tax Deducted at Source (TDS) refunds from the Income Tax (I-T) department.
Chavan’s arrest followed the detention of Rajesh Batreja, another key player in the scam. According to ED sources, Chavan played a crucial role in concealing and diverting the proceeds of crime, engaging in hawala transactions, and destroying evidence to obstruct the probe.
The investigation revealed that Chavan and Batreja had communicated frequently about diverting funds and laundering the scam’s proceeds. During a raid at Chavan’s premises, the ED seized property documents, foreign currency, and mobile phones, further solidifying their case against him.
Earlier arrests in the case include former I-T official Tanaji Adhikari and businessmen Bhushan Patil and Rajesh Shetty. The ED’s probe, initiated after the Central Bureau of Investigation (CBI) flagged the fraudulent TDS refunds, uncovered Rs263.95 crore illegally withdrawn between November 2019 and November 2020.
The ED has so far seized or attached properties worth Rs168 crore and continues its investigation to trace the remaining funds. Chavan has been remanded in custody until May 27 as the ED seeks to unravel more details about the laundering scheme.