“Bengaluru Man Held by ED for Alleged Fraud in Income Tax Returns and Refunds”
The Enforcement Directorate (ED) arrested a man from Bengaluru, Dilip B R, under the Prevention of Money Laundering Act (PMLA) for allegedly manipulating Income Tax Returns (ITRs) to fraudulently obtain refunds. The arrest was made on November 18, and a special PMLA court sent him to ED custody for seven days.
The Enforcement Directorate (ED) arrested a man from Bengaluru, Dilip B R, under the Prevention of Money Laundering Act (PMLA) for allegedly manipulating Income Tax Returns (ITRs) to fraudulently obtain refunds. The arrest was made on November 18, and a special PMLA court sent him to ED custody for seven days.
According to the ED’s statement, Dilip B R used sophisticated tactics to exploit vulnerabilities in the ‘Kaveri’ and ‘Jamabandi’ portals of the Karnataka and Haryana state governments. These portals provided access to data on non-resident taxpayers who had sold property in India and had significant tax deductions at source (TDS). The accused allegedly used this data to carry out his fraudulent activities.
Dilip B R exploited the data, which included Aadhaar and PAN numbers, to forge documents and open bank accounts in the names of his targets, particularly in banks with lax Know Your Customer (KYC) processes. Once the accounts were set up, he accessed the Income Tax Department’s e-filing portal and manipulated the ITRs to reduce tax liabilities and inflate refund amounts. He then transferred the refunds into bank accounts controlled by him using fraudulent means.
The ED claims that Dilip B R generated more than ₹10 crore as proceeds of crime, which he allegedly laundered into gold, jewelry, cash, and cryptocurrency investments. The man, according to the ED, is a habitual offender involved in several other crimes, including bank loan fraud and identity theft. He reportedly used multiple aliases, such as Dilip Rajegowda and Dilip Balaganchi Rajegowda, to obtain multiple Permanent Account Numbers (PANs).
This case highlights the growing issue of fraud in the financial sector and the need for stricter checks to prevent such manipulation of government portals and financial systems. The ED’s investigation continues as they look into Dilip B R’s other alleged offenses and the full scope of his fraudulent operations.
Sources By Agencies
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