Bail plea of ​​IPS officer’s husband rejected in Rs 263 crore refund scam, court said – prima facie evidence present

A special court in Mumbai on Monday rejected the bail plea of ​​Purushottam Chavan, husband of a senior IPS officer arrested in the Rs 263 crore income tax refund scam case. This case has been registered under Money Laundering Act (PMLA). The court said that there was prima facie evidence against Chavan that he collected money wrongfully. Chavan was arrested by the Enforcement Directorate (ED) in May 2024.

Income tax refund scam of Rs 263 crore

In this scam, it is alleged that a fraud of Rs 263.95 crore was committed in the name of tax refund. According to the ED, Chavan planned the scam with former senior tax assistant Tanaji Adhikari and other accused.

Rigging in the name of TDS refund

• This money was released as refund in the name of Tax Deducted (TDS).
• ED claims that Chavan used this money illegally through his firm in Dubai.

Chavan’s defense and court’s decision

Chavan’s arguments:

• In the bail petition, Chavan said that his name is not directly included in any FIR or charge sheet.
• He also said that there was no evidence against him except the statement of his co-accused.
• Chavan claimed that he was not given a chance to present his views.

ED’s side:

• ED told the court that co-accused Batreja had given a statement that he had to pay Rs 10.40 crore to Chavan at different times.
• ED alleges that this money was withdrawn through a firm formed by Chavan in Dubai.

Why did the court reject the bail?

Special Judge AC Daga, while rejecting the bail, said:

• There is prima facie evidence against Chavan based on the statement of co-accused Batreja.
• Batreja admitted that Chavan had demanded Rs 11 crore in the scam, of which Rs 10.40 crore was given to him.
• Chavan cited his health, but the court did not consider this sufficient.
• The court said that bail cannot be granted merely by claiming illness. It remains to be seen whether his health deteriorated due to being in jail or not.

Accused of hiding illegal money

According to ED:

• Chavan formed a firm in Dubai, the main objective of which was to launder illegally acquired money.
• Through this company, money was withdrawn from Batreja’s account and used in the scam.