The Income Tax Appellate Tribunal (ITAT) has dismissed an appeal challenging the attachment of a ₹52 crore deposit in the Buldana Urban Co-operative Credit Society. This deposit was allegedly linked to illicit payments for transfers and postings within Maharashtra’s Public Works Department (PWD) during the tenure of the Maha Vikas Aghadi (MVA) government.

The tribunal’s decision was based on evidence from a 2021 investigation by the Income Tax Department, which uncovered substantial cash deposits in approximately 900 new non-PAN accounts at the credit society. These funds were later converted into fixed deposits and withdrawn. A summary sheet found on the iPhone of Chartered Accountant Nilesh Toshniwal detailed the generation of ₹450.3 crore from various sources, including PWD transfers, with disbursements to individuals referred to as “JS” and “SAMRAT.”

While Ashok Chavan, the PWD minister at the time and now a BJP Member of Parliament, was mentioned in the context of the case, the tribunal clarified that there was no direct evidence linking him to the deposits. The primary individuals identified were intermediaries Prashant Nilawar and Jayant Hiralal Shah, associated with real estate and construction activities.

The appellants contended that the deposits were legitimate savings from rural and urban residents, possibly accumulated during deposit drives. However, the tribunal found this explanation insufficient to counter the evidence suggesting the funds were proceeds from corrupt practices within the PWD.

This ruling underscores the judiciary’s stance against corruption and the misuse of financial institutions for laundering illicit funds.

Sources