ED Arrests Bengaluru Man For Allegedly Manipulating Itrs To Secure Fraudulent Tax Refunds, Money Laundering

(MENAFN- Live Mint) The Enforcement Directorate (ED) has arrested a Bengaluru resident, Dilip B R, for allegedly manipulating Income Tax Returns (ITRs) to secure fraudulent refunds. The arrest was made on November 18 under the Prevention of Money Laundering Act (PMLA). The agency said in a statement on Wednesday that a special court had remanded him to ED custody for seven days, as per a PTI report.

“One of the key fraudulent tactics used by Dilip B R was the manipulation of ITRs to secure access to non-genuine refunds,” the ED alleged as per the report.

According to the investigation, Dilip exploited vulnerabilities in the 'Kaveri' and 'Jamabandi' portals, which are government platforms in Karnataka and Haryana, to obtain data on non-resident taxpayers who had sold properties in India with high tax deductions at source (TDS), the report said.

“Using Aadhaar and PAN (permanent account number) data from property records, he forged documents to open bank accounts in the names of his targets, specifically choosing banks with lax KYC requirements,” the ED claimed.

The agency alleged that Dilip accessed the Income Tax Department's e-filing portal using these fraudulent accounts. By revising ITRs, he reduced tax liabilities and increased refund amounts, which were then funnelled into accounts under his control, the ED said.

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The probe revealed that Dilip generated proceeds of crime exceeding ₹10 crore, which he allegedly laundered into gold, jewelry, cash, and cryptocurrency investments.

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The ED described Dilip as a“habitual offender” involved in a range of financial crimes, including bank loan fraud and identity theft. He reportedly used multiple identities and PAN cards under aliases such as Dilip Rajegowda and Dilip Balaganchi Rajegowda.

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The agency claimed he also allegedly defrauded banks by obtaining vehicle loans through fraudulent means.

The ED's investigation highlights the sophisticated tactics used by the accused, raising concerns over systemic vulnerabilities in tax and banking systems that were exploited in the fraud. Further inquiries are underway to trace additional proceeds of the crime.

(With inputs from PTI)

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