The Enforcement Directorate (ED) arrested Dilip B R, a Bengaluru resident, on November 18 for allegedly manipulating Income Tax Returns (ITRs) to secure fraudulent refunds. The arrest, made under the Prevention of Money Laundering Act (PMLA), followed a special court’s remand of the accused for seven days, as reported by PTI.
According to the ED’s statement, Dilip B R used several deceptive tactics to exploit the system. One of his primary methods involved manipulating ITRs to access non-genuine tax refunds. He exploited weaknesses in government portals like ‘Kaveri’ and ‘Jamabandi,’ used in Karnataka and Haryana, to gather data on non-resident taxpayers who had sold properties in India with high tax deductions at source (TDS).
The ED further alleged that Dilip used Aadhaar and PAN details from property records to forge documents and open bank accounts under false identities. He specifically targeted banks with lax Know Your Customer (KYC) protocols. Once these accounts were opened, Dilip accessed the Income Tax Department’s e-filing portal, altered ITRs to reduce tax liabilities, and inflated refund amounts, which were then diverted to accounts controlled by him.
The investigation revealed that Dilip generated illicit earnings exceeding ₹10 crore, which he allegedly laundered into gold, jewelry, cash, and cryptocurrency. The ED described him as a “habitual offender” involved in multiple financial crimes, including bank loan fraud and identity theft. Dilip is also said to have used aliases such as Dilip Rajegowda and Dilip Balaganchi Rajegowda, and committed further frauds by obtaining vehicle loans through forged documents.
The case raises serious concerns about the vulnerabilities in the country’s tax and banking systems, which were exploited by the accused. The ED is continuing its investigation to trace additional proceeds of the crime.
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