Cyber Crime
Bengaluru Man Arrested for Rs 10 Crore Tax Refund Scam, Used Fake Identities and Cryptocurrencies
New Delhi: The Enforcement Directorate (ED) announced the arrest of a Bengaluru resident, Dilip B R, on for allegedly orchestrating a sophisticated fraud involving the manipulation of Income Tax Returns (ITRs) to secure illegitimate tax refunds. A special court under the Prevention of Money Laundering Act (PMLA) has remanded him to ED custody for seven days.
In a statement, the ED revealed that Dilip B R exploited loopholes in the ‘Kaveri’ and ‘Jamabandi’ portals of the Karnataka and Haryana state governments to access data on non-resident taxpayers who had sold property in India and faced significant Tax Deducted at Source (TDS) deductions.
ALSO READ: Nominations Open for ‘Women in Cyber’ Honors at FutureCrime Summit 2025
Fraudulent Tactics Unveiled
The agency alleged that the accused used Aadhaar and PAN details obtained from property records to forge documents and open bank accounts in the names of his unsuspecting targets. He deliberately selected banks with lenient Know Your Customer (KYC) requirements for this purpose.
Using these accounts, he accessed the Income Tax Department’s e-filing portal and revised the victims’ ITRs to lower their tax liabilities and inflate refund amounts. The refunds were then diverted into fraudulent accounts under his control, the ED stated.
Proceeds of Crime
Preliminary investigations suggest that the accused generated over Rs 10 crore through these fraudulent activities. The funds were allegedly laundered into gold, jewelry, cash, and cryptocurrency investments.
A Habitual Offender
The ED described Dilip B R as a habitual offender, linking him to multiple cases of financial fraud, including bank loan scams and identity theft. He allegedly assumed multiple identities under names such as Dilip B R, Dilip Rajegowda, and Dilip Balaganchi Rajegowda.
ALSO READ: FutureCrime Summit: Biggest Conference on Cyber Crimes Set to Return on February 13-14, 2025, in New Delhi
The agency also accused him of defrauding several banks by obtaining vehicle loans using false documentation and misrepresentation.
The case highlights the increasing sophistication of financial crimes and underscores the importance of strengthening regulatory mechanisms to prevent such frauds. The investigation is ongoing to uncover further details and recover the proceeds of crime.