The Income Tax Department’s investigation unit has brought human resources personnel from more than 25 companies nationwide and over 20 chartered accountants under scrutiny as part of a probe into an alleged ₹357 crore tax refund fraud. Investigators have thoroughly examined every aspect of the case prior to issuing formal notices to Nancy Agrawal. Agrawal is accused of exploiting system loopholes over a three-year period to secure ₹65.5 crore in illegal refunds for more than 3,000 clients through improper deductions and fake claims.
Banking Records and Political Donation Receipts Examined
As part of the expanding inquiry, investigation teams have gathered transaction details regarding funds deposited into the accused person’s accounts across three banking institutions, including the Brahmpuri branch of the State Bank of India. Authorities are questioning individuals who deposited money online into Agrawal’s accounts to trace the financial trail.
Investigators are also probing entities utilized by Agrawal to fabricate receipts and documentation showing heavy donations on behalf of clients to unrecognized political parties. Chartered accountants Nikhil Gupta and Priyam Gupta of CA Gupta Brothers have also been brought under the scope of the investigation. Income tax surveys were conducted at their premises on July 14 and 15, 2025, coinciding with a simultaneous survey at Agrawal’s location.
Referral Schemes Used to Build Client Base
According to an investigation team member, Agrawal operated a structured chain system utilizing referral discounts to build a nationwide client network. Existing clients were enticed with promises of larger refunds if they brought in new taxpayers to the scheme. Clients received a share of the commission or referral discounts ranging between 20 and 30 percent.
The client base comprised predominantly employed individuals who were lured by the prospect of tax savings and deductions. Meanwhile, Nikhil Gupta has denied any involvement in the matter, stating that he has no connection to the case and does not know Nancy Agrawal.
