Chennai: In a major case of income tax refund fraud, a special court in Chennai has convicted seven individuals, including a tax department official and a police personnel, sentencing them to four years of rigorous imprisonment along with a total fine of ₹2.4 lakh. The case exposes how insiders misused government systems to siphon off crores of rupees.
Among those convicted are Babu Prasath Kumar, a former senior tax assistant in the Income Tax Department, and his brother Praveen Kumar, currently serving as an inspector in the city police. The court also found Trewellyn Marion Corneille, P Stephen, A Gopikrishna, Venkatesh, and C Gunaseelan guilty in the case.
Forged Identities and Financial Manipulation
Investigations revealed that the accused manipulated the income tax refund process between 2015 and 2019. Using forged documents and fictitious identities, they fraudulently generated tax refunds through the system. The scam resulted in an estimated loss of ₹2.38 crore to the Income Tax Department.
FCRF Launches Premier CISO Certification Amid Rising Demand for Cybersecurity Leadership
The case was registered in December 2019 after an official from the department flagged suspicious refund activity. Initial scrutiny indicated that the irregularities were not accidental but part of a well-planned conspiracy. A detailed probe was subsequently launched, involving examination of digital records, financial transactions, and supporting documents.
Investigation, Chargesheets, and Conviction
During the investigation, it was found that Babu Prasath Kumar played a key role by exploiting his position within the department to directly interfere with the system and process fake refunds. To conceal the illegal proceeds, he routed the money through bank accounts belonging to family members and associates, effectively masking the origin of the funds.
After completing the investigation, authorities filed seven charge sheets in March 2021. Based on the evidence presented and witness testimonies, the court held all the accused guilty. Taking a serious view of the economic offence, the court imposed strict punishment to deter similar crimes in the future.
A notable aspect of the case is that Praveen Kumar, the police official among the accused, had reportedly been on leave in recent days but did not cite court proceedings as the reason for his absence. This has raised additional questions, and a separate departmental inquiry may follow.
Systemic Gaps and Lessons for Governance
The case highlights significant vulnerabilities within government systems and demonstrates how internal collusion can lead to large-scale financial fraud. A system designed for transparency and efficiency was misused to execute a sophisticated scam, underlining the risks posed by insider involvement.
Experts believe that preventing such incidents requires stronger technological safeguards along with strict accountability of personnel. Continuous auditing, real-time monitoring, and early detection of suspicious transactions are essential to curb such frauds.
Investigators believe that organised frauds of this nature often involve wider networks. Efforts are ongoing to trace any additional links connected to the case, with the aim of exposing the entire chain behind the scam.
