The Bombay High Court has granted bail to Purushottam Chavan, husband of a senior IPS officer, and three others arrested in connection with an alleged Rs 263 crore Income Tax TDS refund fraud, observing
that the trial is unlikely to conclude in the near future.
The court noted that the case is largely based on documentary evidence, which has already been collected by the investigating agency.
Bail Granted Under PMLA Case
Justice Shyam Chandak, on December 23, granted bail to Chavan, Bhushan Patil, Tanaji Adhikari and Rajesh Batreja in a case registered by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), 2002.
Each accused was directed to execute a personal bond of Rs 3 lakh, subject to multiple conditions.
Court Rejects ED’s Apprehensions
The court observed, “There is no possibility of the present case being heard and disposed of within a year or two.” It also held that the accused were not likely to abscond and rejected the prosecution’s apprehension of witness tampering, noting that the evidence is documentary in nature.
Background of the Alleged Fraud
The ED case stems from an offence initially registered by the CBI. According to the prosecution, Tanaji Adhikari, then a senior tax assistant and later an income tax inspector, allegedly generated 12 fraudulent TDS refund orders worth Rs 263.95 crore by misusing the login credentials of his seniors, in connivance with Bhushan Patil.
The funds were allegedly routed through M/s SB Enterprises and later transferred to various individuals and shell companies for purchasing movable and immovable assets.
Dubai Link and Hawala Allegations
Chavan and businessman Rajesh Batreja came under scrutiny during further investigation into the proceeds of crime. The ED alleged that funds were siphoned off to Dubai, with Chavan and Batreja facilitating the transactions.
Between August and November 2023, they allegedly dealt with over Rs 11 crore, which Batreja is accused of bringing back to India through hawala channels.
Defence vs Prosecution
Defence counsels argued that the accused had spent long periods in custody over two-and-a-half years for Adhikari and Patil, and over one-and-a-half years for Chavan and Batreja without charges being framed. With a chargesheet running into over 10,000 pages and more than 100 witnesses, continued detention amounted to pre-trial punishment, they said.
The ED opposed the bail, citing the magnitude of the offence. However, the court refused to stay the bail order, allowing release under strict conditions, including travel restrictions, no contact with witnesses, and mandatory asset disclosures.]
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