Habitual offender involved in several loan fraud, identity theft cases arrested by ED

ED arrested Dilip on Monday under the provisions of Prevention of Money Laundering Act (PMLA), after which a Bengaluru court remanded him in ED custody for seven days.

Bengaluru: The Enforcement Directorate (ED) has arrested a habitual offender for his involvement in bank loan fraud, identity theft, and income tax refund scams. The arrest was made on Monday under the Prevention of Money Laundering Act (PMLA).

A Bengaluru court has remanded the man, Dilip BR, to ED custody for seven days.

Dilip allegedly created multiple fake identities to facilitate his fraudulent activities, securing at least three PAN cards under the names Dilip BR, Dilip Rajegowda, and Dilip Balaganchi Rajegowda.

An ED release stated that he used forged documents to open multiple bank accounts, enabling him to defraud banks by obtaining vehicle loans under false pretences.

Exploiting tax systems

"One of the key fraudulent tactics used by Dilip involved the manipulation of income tax returns to secure access to non-genuine refunds. He has exploited vulnerabilities in the Kaveri and Jamabandi portals of the Karnataka and Haryana state government to gather data on non-resident taxpayers who had sold property in India with significant TDS deductions,” the ED said.

Using Aadhaar and PAN data from property records, Dilip forged documents to open bank accounts in his victims' names. These accounts were created in banks with weak Know Your Customer (KYC) compliance.

Once the accounts were operational, Dilip accessed the Income Tax Department’s e-filing portal, revised income tax returns to reduce tax liabilities, and inflated refund amounts. The refunds were then transferred to accounts under his control.

Proceeds of crime

Preliminary investigations estimate that Dilip generated over Rs 10 crore through these fraudulent activities. The proceeds were laundered into gold, jewellery, cash, and cryptocurrency investments.