Mumbai: Purshottam Chavan, the husband of a Maharashtra-cadre IPS officer, after his arrest by the Enforcement Directorate (ED) in a Rs 263 crore TDS fraud case is now facing further trouble. Following the ED, the Economic Offences Wing (EOW) of the Mumbai Police have initiated a probe against him. Chavan is accused of being allegedly involved in counterfeiting government quota property documents, defrauding several individuals. He allegedly prepared fake documents worth Rs 200 crore for 14 upmarket properties in Mumbai and forged Transferable Development Rights (TDRs) for land parcels in Mumbai, Raigad, and Pune. Additionally, he is accused of forging the signature of a deputy secretary of the Maharashtra government to authenticate these counterfeit documents.
Recently, the ED sent an official letter to the EOW, sharing evidence of counterfeit government documents recovered during the ED search operation conducted on May 19, 2024, at the official residence of the IPS officer in Colaba. This search took place shortly before Chavan’s arrest in connection with a Rs 263 crore Income Tax TDS refund fraud case.
During the course of the search operations, the ED uncovered registered documents pertaining to several high-value properties in prime locations such as Worli, Parel, Bandra, and Thane.These properties had been represented as government quota allocations, supported by a letter bearing the signature of the deputy secretary of the Maharashtra government. The properties were registered under various individuals' names. In addition, the ED seized a number of Transferable Development Rights (TDRs) linked to land parcels across Mumbai, Raigad, and Pune. ED investigation revealed that both the forged signature letter and the fraudulent approval for the allocation of these properties under the government quota were meticulously fabricated, while the TDRs turned out to be entirely counterfeit.
However, the recovered forged documents are not listed under the First Schedule of the Prevention of Money Laundering Act (PMLA). which means the ED cannot directly investigate these crimes. When evidence of offenses unrelated to money laundering is uncovered during an investigation, the ED is required to share its findings with the appropriate law enforcement or regulatory agency, to ensure actions remain within the scope of the PMLA. As a result, the ED forwarded the details to the EOW.
Recently Amit Dua, the Additional Director of the Enforcement Directorate (ED), visited the EOW office to meet the senior officials regarding the several ongoing cases.
According to senior officials of the EOW, after receiving a letter from the ED, the EOW initiated an investigation into the case. A Preliminary Enquiry (PE) was ordered, and several individuals were summoned and questioned by the EOW. Officials stated that the individuals summoned were those whose flats, or TDR paper were linked to fake documents recovered during the ED search.
According to sources, during the PE, several individuals came forward with statements accusing Chavan of offering them properties in prime locations such as South Mumbai, Worli, Dadar, Parel, and Thane. The victims revealed that Chavan had assured them that he had strong connections within the state government and could secure flats worth crores of rupees at a fraction of their market value. Allegedly, he claimed these properties were available under the Urban Development Department’s government quota and could be obtained for just 10 to 20 percent of their market price. By making these deceptive promises, Chavan defrauded the victims of crores of rupees.
The financial probe has uncovered alarming details. Over 15 victims testified that while they chose flats in prime areas like Worli, Bandra, and Lower Parel, the registrations took place at a registrar's office in Panch Pakhadi, Thane, with biometric procedures and official challans, suggesting government officials' involvement.
Recovered documents from the IPS officer’s residence indicate that Chavan forged the signature of a Deputy Secretary in the Maharashtra government to validate counterfeit documents. Furthermore,Chavan is reported to have registered these forged documents through a government registrar with the assistance of some unidentified government officials.
According to official sources, during the ED's search operation, several counterfeit TDR for land parcels in Mumbai, Raigad, and Pune were recovered from Chavan's possession. These documents have been handed over by the ED to the EOW for further investigation. TDRs are rights that allow real estate firms to construct beyond the permitted Floor Space Index (FSI), which defines the maximum amount of construction allowed on a plot based on its size. Several counterfeit TDRs, registered in the names of various individuals, were found in Chavan's possession. Victims' statements indicate that Chavan extracted crores of rupees from people by offering them fake TDRs for government land, as further corroborated by statements provided to the EOW.
Chavan is currently in judicial custody, with his bail application recently rejected by the Special PMLA court. The court noted there was no evidence of a life-threatening illness or inadequate treatment related to his mental health. The ED has filed a prosecution complaint in the Rs 263 crore TDS fraud case, and the investigation continues, focusing on Chavan's connections in Dubai and his business dealings.
