A Bengaluru man is arrested by the ED for income tax returns and refund "fraud."

A Bengaluru man was detained by the Enforcement Directorate on Wednesday in accordance with the anti-money laundering statute for allegedly falsifying income tax returns in order to receive fictitious refunds. 

According to a statement from the federal agency, Dilip B. R. was placed under ED custody for seven days after being arrested on November 18 by a special Prevention of Money Laundering Act court.

"One of the key fraudulent tactics used by Dilip B R was the manipulation of ITRs to secure access to non-genuine refunds," the Enforcement Director stated.

According to an inquiry, the accused "exploited" weaknesses in the Karnataka and Haryana state governments' "Kaveri" and "Jamabandi" portals to collect information on non-resident taxpayers who had sold real estate in India with substantial TDS deductions. 

"Using Aadhaar 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," alleged the Enforcement Directorate. 

According to the allegations, the accused subsequently utilized these accounts to access the Income Tax Department's e-filing platform, updated the ITRs to lower tax obligations, and boosted refund amounts. Lastly, the agency said he transferred the returns to bank accounts under his control using "fraudulent" accounts.