A special court under the Prevention of Money Laundering Act (PMLA) has dismissed the bail plea of Purushottam Chavan, husband of an IPS officer, who has been in judicial custody for over a year in connection with a massive Rs 263 crore income tax refund scam.
Chavan, aged 52, had sought bail citing severe medical conditions, arguing that his deteriorating health required continuous specialist supervision. His counsel contended that continued incarceration posed a serious threat to his life.
However, the court, after reviewing the medical reports, found no compelling reason to justify release. It noted that Chavan's health issues could be adequately managed by the jail's Chief Medical Officer or at JJ Hospital, and therefore did not warrant bail on humanitarian grounds.
Court Emphasizes Seriousness of Economic Offences
Rejecting the plea, the court underscored the gravity of the alleged crime, observing:
"The offence is a serious economic offence affecting the socio-economic condition of society and the financial integrity of the nation. Therefore, the bail application deserves to be rejected."
This is not the first time Chavan has been denied bail. He had earlier been refused bail in two separate cases investigated by the Economic Offences Wing (EOW), both related to alleged financial irregularities.
ED's Allegations: Rs 263 Crore Fraudulent Tax Refunds
The Enforcement Directorate (ED) is probing the alleged money laundering linked to a Rs 263 crore fraudulent TDS refund scam.
According to investigators, Tanaji Adhikari, a senior tax assistant in the Income Tax Department's TDS refund section, fraudulently processed refunds using the login credentials of senior officials. The funds were diverted to accounts controlled by his associates, including Rajesh Batreja and Purushottam Chavan.
Batreja allegedly transferred Rs 55.5 crore to Dubai, later repatriating the money as purported investments in Indian companies. The ED claims that Rs 12 crore was paid to Chavan, who allegedly promised to use his influence to assist in the ongoing ED probe. Between August and November 2023, both Chavan and Batreja allegedly handled Rs 11 crore as proceeds of crime.
Two police constables attached to the IPS officer, accused of collecting tainted funds on behalf of Chavan, have reportedly turned witnesses in the case.
Judiciary's Firm Stand on Financial Crimes
The court's decision reinforces the judiciary's tough stance on economic offences, particularly in cases involving large-scale financial frauds and misuse of public office or authority.
Legal experts noted that the order aligns with the Supreme Court's consistent view that economic offences are grave in nature and bail in such cases must be considered only after balancing personal liberty with national financial integrity.
Ongoing Investigation
Chavan remains in judicial custody, and the ED continues to track multiple financial trails linked to the alleged scam. The case forms part of a wider crackdown on fraudulent TDS refund schemes involving misuse of official credentials and movement of funds across jurisdictions.
With several co-accused still under investigation, authorities are expected to file supplementary charge sheets as forensic and financial audits progress.
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