Bengaluru man nabbed: ED busts Rs 10 cr scam involving fake PANs, tax fraud

Using Aadhar and PAN data from property records, he forged documents to open bank accounts in the names of his targets, specifically choosing banks with lax KYC requirements.

Dilip B R, a conman allegedly involved in a series of financial crimes, was arrested by the Directorate of Enforcement (ED) on November 18, 2024, officials said on Monday.  The arrest was made under the Prevention of Money Laundering Act (PMLA), 2002, following an investigation into his involvement in multiple fraudulent activities, including bank loan fraud, identity theft, and tax refund scams.

 

Dilip B R was taken into custody on November 18 and a special Prevention of Money Laundering Act (PMLA) court sent him to ED custody for seven days, the federal agency said in a statement.

 

The investigation revealed that Dilip B R, using several aliases, had been committing fraudulent acts for years by taking advantage of the financial system.

 

 

According to ED officials, Dilip B R had assumed multiple identities, obtaining several Permanent Account Numbers (PANs) and committing fraud using these false identities. He operated under names like Dilip B R, Dilip Rajegowda, and Dilip Balaganchi Rajegowda, using the various PAN cards to carry out multiple illegal transactions. The accused is believed to have defrauded several banks by obtaining vehicle loans under false pretenses using forged documents and fake identities.

 

One of the major crimes attributed to Dilip B R involved identity theft. He is accused of misappropriating personal identification documents, such as PAN cards and Aadhar cards, from unsuspecting individuals. With this stolen information, he opened bank accounts in their names, further deepening his fraudulent activities.

 

Another significant tactic used by Dilip B R was the manipulation of income tax returns (ITRs) to secure fraudulent refunds. By exploiting vulnerabilities in the Kaveri and Jamabandi portals of Karnataka and Haryana, he accessed information about non-resident taxpayers who had sold property in India and had substantial tax deducted at source (TDS). Using this data, he forged documents to open bank accounts at banks with weak Know Your Customer (KYC) protocols.

 

"Once he had control of these accounts, he revised the ITRs to reduce the tax liabilities of the property sellers and artificially inflated the refund amounts. The fraudulent refunds were then transferred to accounts under his control," ED said in a statement.

 

Preliminary investigations suggest that Dilip B R generated over Rs 10 Crore in proceeds from his crimes, which he reportedly laundered into gold, jewellery, cash, and cryptocurrency investments.

 

The ED is continuing its investigation into the case, and authorities are working to track down other potential victims of the accused's fraudulent activities.